Today, FAH sent letters to CMS with comments on the FY 2026 Inpatient Rehabilitation Facility PPS and Inpatient Psychiatric Facility PPS proposed rules. In both letters, FAH urges CMS to provide an adequate market basket update by increasing the proposed rate to account for market basket forecast error from FY 2021 through FY 2024. 

In the psych rule letter, FAH urges CMS to implement changes to the teaching hospital facility adjustment over a two-year transition to minimize the resulting negative impact for non-teaching psych hospitals. In the rehab rule letter, FAH urges CMS to consider IRF patient assessment instrument changes to minimize burden.

CMS is expected to release the final rules for FY 2026 on August 1, 2025.

Read the IPF PPS letter here.

Read the IRF PPS letter here.