On April 21, 2008 the Centers for Medicare and Medicaid Services ("CMS") released a proposed rule regarding the Fiscal Year 2009 Inpatient Rehabilitation Facility Prospective Payment System. The proposed rule discusses changes to the 75% rule and requires a freeze on inpatient rehabilitation facility rates from April 1, 2008 through September 30, 2009. The proposed rule also discusses lowering the compliance threshold for certain cost reporting periods. Comments to CMS are being accepted through June 20, 2008. Under the Social Security Act, the final rule will be published on or before August 1. The proposed rule can be found in its entirety at http://www.cms.hhs.gov/InpatientRehabFacPPS/downloads/cms-1554-p-display.pdf

Paul J. Welk