IRF Countdown to Big Change Continues

Changes are effective Oct. 1, 2019

In this article, we aim to continue to remind Inpatient Rehabilitation Facilities (IRFs) of the looming transition from utilizing Functional Independence Measures (FIMtm) for the purposes of assigning patients to a case-mix group (CMG) to the use of key quality indictor data – specifically the GG Self-Care and Mobility codes – for CMG placement and Medicare fee-for-service payment for IRF admissions. 

As Oct. 1, 2019, rapidly approaches, IRFs need to be in the final stages of training and preparation. Patients who are discharged on or after Oct. 1, 2019, will be paid based on the new formula.

Changes in the Final Rule
Related to this topic, the final rule for the 2020 fiscal year was published in the Federal Register on Aug. 8, 2019. The final rule closely matched the proposed rule, but it is noteworthy that several provisions were not finalized, including the weighting of the motor score for CMG placement and the requirement to submit quality indicator data for all patients regardless of the payor. CMS noted that delaying the weighting of the scores would provide IRFs with an easier transition under the revised formulas, but for IRFs that have calculated payment impact under the proposed formula, there is a need to take a second look.

Final Steps in Preparation
Because the changes impact patients discharged on or after Oct. 1, IRFs need to be ready by mid-September to ensure that data collected for patients with an average length of stay of approximately 13 days is accurate and complete. 

Again, while we’ve been collecting the data for several years, IRFs have focused on the accuracy of other data elements, and we have found in working with clients that they are facing challenges with scoring these elements and providing detailed documentation – not just a number – to support the scores.

Determine the Updated Impact
Along with the final rule for 2020, CMS posted updated rate-setting files.  IRFs can download the July 31, 2019, updated files at this link: Data Files. The rate-setting file will allow IRFs to calculate impact based on the updated formula, which does not weight the GG Functional Quality Indicators.

Finalize Documentation Changes
IRFs should be trialing any changes to their EMRs or paper templates now to ensure that workflow is efficient and that the correct scores and documentation to support them are present. 

Train, Train, Train
For staff who have utilized FIMtm measures for many years, the switch in language and scoring may be difficult – old habits are hard to break, and this could significantly impact scoring accuracy and thus payment. Changing language to match the scoring definitions is essential in breaking the cycle.

Train, Audit, and Retrain
Review of scoring in “live” records will allow IRFs to identify and support training needs. This cycle should continue well past implementation.

What’s the Bottom Line?
The clock keeps ticking! We’re down to just six weeks before the transition, and should be finalizing training and form implementation now.

Facebook
Twitter
LinkedIn

Angela Phillips, PT

Angela M. Phillips, PT, is President & Chief Executive Officer of Images & Associates. A graduate of the University of Pennsylvania, School of Allied Health Professions, she has almost 45 years of experience as a consultant, healthcare executive, hospital administrator, educator, and clinician. Ms. Phillips is one of the nation’s leading consultants assisting Inpatient Rehabilitation Facilities in operating effectively under the Medicare Prospective Payment System (PPS) and in addressing key issues related to compliance.

Related Stories

Can Any Physician Enter an Inpatient Order?

Can Any Physician Enter an Inpatient Order?

Let’s talk about the term “attending physician.”  The simplest definition is the physician primarily responsible for a hospitalized patient’s care.  While there may be many

Read More
CMS Rural Health Transformation Program

CMS Rural Health Transformation Program

The Centers for Medicare & Medicaid Services (CMS) has launched the Rural Health Transformation (RHT) Program, a $50 billion, five-year federal initiative to strengthen healthcare

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

I022426_SQUARE

Fracture Care Coding: Reduce Denials Through Accurate Coding, Sequencing, and Modifier Use

Expert presenters Kathy Pride, RHIT, CPC, CCS-P, CPMA, and Brandi Russell, RHIA, CCS, COC, CPMA, break down complex fracture care coding rules, walk through correct modifier application (-25, -57, 54, 55), and clarify sequencing for initial and subsequent encounters. Attendees will gain the practical knowledge needed to submit clean claims, ensure compliance, and stay one step ahead of payer audits in 2026.

February 24, 2026
Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 25, 2025
Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis remains one of the most frequently denied and contested diagnoses, creating costly revenue loss and compliance risks. In this webcast, Angela Comfort, DBA, MBA, RHIA, CDIP, CCS, CCS-P, provides practical, real-world strategies to align documentation with coding guidelines, reconcile Sepsis-2 and Sepsis-3 definitions, and apply compliant queries. You’ll learn how to identify and address documentation gaps, strengthen provider engagement, and defend diagnoses against payer scrutiny—equipping you to protect reimbursement, improve SOI/ROM capture, and reduce audit vulnerability in this high-risk area.

September 24, 2025

Trending News

Featured Webcasts

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

AI in Claims Auditing: Turning Compliance Risks into Defensible Systems

As AI reshapes healthcare compliance, the risk of biased outputs and opaque decision-making grows. This webcast, led by Frank Cohen, delivers a practical Four-Pillar Governance Framework—Transparency, Accountability, Fairness, and Explainability—to help you govern AI-driven claim auditing with confidence. Learn how to identify and mitigate bias, implement robust human oversight, and document defensible AI review processes that regulators and auditors will accept. Discover concrete remedies, from rotation protocols to uncertainty scoring, and actionable steps to evaluate vendors before contracts are signed. In a regulatory landscape that moves faster than ever, gain the tools to stay compliant, defend your processes, and reduce liability while maintaining operational effectiveness.

January 13, 2026

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24