Inpatient rehab facilities lose a decade-long rural payment boost

Payments for inpatient rehabilitation facilities are changing for fiscal year 2027. The government is phasing out a special payment adjustment for rural facilities over three years, ending it completely next year. This means facilities in rural areas will receive less money for treating patients.

This rule marks the end of a specific payment advantage for rural hospitals that has been in place for years. It means that facilities in non-urban areas will now be paid the same rate as those in urban areas for similar patient cases. This could affect the financial viability of rural rehabilitation centers, potentially leading to service reductions or closures where they are most needed.