Medicare will pay less for rural rehabilitation care, phasing out a long-standing bonus

Medicare is continuing to reduce extra payments to inpatient rehabilitation facilities in rural areas. This means rural facilities will receive less money per patient over the next two years.

For years, rural hospitals received extra money from Medicare to help cover higher operating costs and ensure access to care. This rule continues to remove that financial cushion. It could make it harder for some rural rehabilitation centers to stay open or offer the same level of service.