Rehab, hospice, psychiatric providers to get Medicare pay raises

Modern Healthcare – Friday, August 1, 2025
By Bridget Early

Inpatient rehabilitation facilities, hospice providers and inpatient psychiatric hospitals will receive modest Medicare reimbursement increases in fiscal 2026 under final rules the Centers for Medicare and Medicaid Services issued Friday.

Medicare payments for inpatient rehab facilities will rise 2.6% when the fiscal year begins Oct. 1.

Hospice providers got a 2.6% payment update. The regulation also requires that face-to-face encounter attestations must include signatures and dates from the clinicians present.

Inpatient psychiatric hospitals are set for a 2.5% Medicare rate hike. CMS also eliminated quality metrics for health equity and COVID-19 vaccination rates.

Earlier this week, CMS published final rules setting fiscal 2026 Medicare reimbursements for inpatient hospitals, long-term care hospitals and skilled nursing facilities.

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