Updates under the FY 2027 Inpatient Rehabilitation Facility (IRF) Prospective Payment System Final Rule took effect October 1, 2026. The rule increases IRF PPS payment rates by 2.3% and updates the outlier threshold, case-mix group relative weights, average length-of-stay values and wage index.

Other changes address the 36-hour therapy requirement, timing of the initial interdisciplinary team meeting and the IRF Quality Reporting Program data submission deadline. IRFs should ensure affected staff are aware that these requirements are now in effect and confirm that admission, therapy, team-meeting, documentation and quality-reporting workflows reflect the updated policies.

For details, review the CMS FY 2027 IRF PPS Final Rule fact sheet and the FY 2027 IRF PPS Final Rule in the Federal Register.