IRFs in 2017: Staying the Course Toward Compliance

With daily headlines about potential changes in healthcare regulations emerging, inpatient rehabilitation facilities (IRFs), along with other post-acute care providers, need to focus on the current state of the industry while monitoring regulatory activity for changes. 

With the increased burden created by documentation and data collection mandates implemented on Oct. 1, 2016 barely behind us, additional provisions are scheduled for implementation in the fall, as audits performed by a variety of agencies continue to increase in number. With that in mind, IRFs should take stock of important processes and procedures and assess their readiness for continued administrative burdens in order to meet the requirements. 

Key Issues Unlikely to Change

Regardless of the outcome of current discussions about repealing portions of the Patient Protection and Affordable Care Act (PPACA), IRFs can and should expect the following to continue:

  • Audits and claims scrutiny
  • Increasing requirements for data collection with the expansion of quality indicators
  • A continued push toward bundled payments and/or unified payment for post-acute services.

With this in mind, it’s a good time for IRFs to perform some self-assessment related to these issues and related processes. As we kick off 2017, it is an excellent time to assess operational processes to evaluate how well IRFs are doing with the more recent changes and to take a look at how well we are managing adjustments in requirements regarding coding and documentation.

Audits, Audits, Audits, and More Audits 

IRFs continue to undergo prepayment review, post-payment review, Comprehensive Error Rate Testing (CERT) review, and other scrutiny from payers – and the demands for records take a toll on medical records and administrative staff. A solid process for assembling, paginating, validating, and sending records in response to documentation requests will help avoid denials for failure to respond, and great preparation of each record improves the likelihood that the reviewer will be able to locate the required information.

Internal audits for common denial reasons – often the technical components of the Medicare documentation requirements – can assist in identifying opportunities to reduce the risk of denials on this front. And ongoing education of staff to improve the quality, completeness, and timeliness of documentation can add another layer of support for success.

Quality Indicators: GG Codes Versus FIM Scores

At four months into data collection for the expanded quality indicators, including the functional GG Codes, IRFs should evaluate the accuracy of those codes and also assess if this added documentation requirement has impacted the accuracy of Functional Independence Measurement (FIM) scoring. If there have been changes in FIM scoring trends, it might be time to reeducate staff in correct scoring for both sets of data.

ICD-10 and CMS-13 Compliance

Some IRFs have noted a decrease in Centers for Medicare & Medicaid Services (CMS)-13 compliance since the onset of ICD-10, even though their patient populations have not changed dramatically. If this is the case for your organization, a review of cases you believe should qualify as compared to those that were identified by your computer software needs to be completed. In some cases, paired ICD-10 codes must be entered on the IRF-PAI to support a CMS-13 diagnosis. IRFs should work closely with their coding staffs to address the differences between coding the IRF-PAI and coding for the UB-04.

And it’s equally important to understand the differences that are allowable in coding the etiological diagnosis section of the IRF-PAI as compared to the entries on the UB04.

The Bottom Line

There are many factors that contribute to success for IRFs, and leaders and managers will continue to juggle efforts to comply with multiple sets of regulations and confusing and conflicting documentation requirements. Managing how these issues interact isn’t simple and requires ongoing assessment, planning, and practice.

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

Leave a Reply

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

Featured Webcasts

Sepsis Sequencing in Focus: From Documentation to Defensible Coding

Sepsis sequencing continues to challenge even experienced coding and CDI professionals, with evolving guidelines, documentation gaps, and payer scrutiny driving denials and data inconsistencies. In this webcast, Payal Sinha, MBA, RHIA, CCDS, CDIP, CCS, CCS-P, CCDS-O, CRC, CRCR, provides clear guideline-based strategies to accurately code sepsis, severe sepsis, and septic shock, assign POA indicators, clarify the relationship between infection and organ dysfunction, and align documentation across teams. Attendees will gain practical tools to strengthen audit defensibility, improve first-pass accuracy, support appeal success, reduce denials, and ensure accurate quality reporting, empowering organizations to achieve consistent, compliant sepsis coding outcomes.

March 26, 2026
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

Trending News

Featured Webcasts

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

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