Analyses for the Initial Implementation of the Inpatient Rehabilitation Facility Prospective Payment System
Jan 1, 2002
In the Balanced Budget Act of 1997, Congress mandated that Health CareFinancing Administration (HCFA) implement a Prospective Payment System (PPS)for inpatient rehabilitation. The Centers for Medicare and Medicaid Services(CMS, the successor agency to HCFA) issued the final rule governing such aPPS on August 7, 2001. This report summarizes the research that RANDperformed to support HCFA's efforts to design, develop, and implement thePPS. It describes RAND's research on new function-related groups,comorbidities, unusual cases, facility-level adjustments, outlier payments,facility-level adjustments, and assessment instruments. In addition, itpresents recommendations concerning the payment system and discusses theresearchers' plans for further research on the monitoring and refinement ofthe PPS.