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Medical Rehab Hospital Inspections Go Unpublicized by Federal Officials

July 18, 2025
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Jordan Rau, KFF Well being Information

Federal well being officers don’t inform customers about extreme security violations in hospitals specializing in bodily rehabilitation. Nor does Medicare impose fines because it does for nursing properties, or present easy-to-understand five-star rankings because it does for common hospitals, in accordance with an investigation by KFF Well being Information and The New York Instances. 

Medical rehab hospitals have turn into a extremely profitable area of interest throughout the well being care business, collectively producing earnings of 10%, greater than common hospitals, which earn about 6%, and way over expert nursing properties, which make lower than 0.5%, in accordance with the newest knowledge from the Medicare Cost Advisory Fee, an impartial congressional company often called MedPAC. 

However MedPAC and impartial researchers have discovered that for-profit rehabs are inclined to have increased charges of sufferers being readmitted to common hospitals than nonprofits do. 

In 2023, stand-alone for-profit rehabilitation hospitals overtook nonprofits because the locations the place most annual affected person admissions happen, a KFF Well being Information and New York Instances evaluation discovered. These amenities are required to offer three hours of bodily, occupational, or speech remedy a day, 5 days per week. 

Congress has not approved Medicare to high quality rehab hospitals for violations uncovered throughout inspections, even ones that resulted in demise, because it has performed with almost 8,000 nursing properties over the past three years, imposing common fines of about $28,000. 

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The one possibility is to thoroughly lower off a rehab hospital’s reimbursement for all companies by Medicare and Medicaid, which cowl most sufferers. That step would almost definitely put it out of enterprise and is sort of by no means used. Even probably the most critical violations successfully carry no punishments as long as the hospital places steps in place to avert future issues. 

The federal authorities’s total high quality oversight efforts are restricted. Medicare docks fee to rehab amenities for sufferers readmitted to a common hospital throughout shorter-than-average rehab stays, however in contrast to at common hospitals, there aren’t any monetary penalties when not too long ago discharged rehab sufferers are hospitalized for essential well being points. 

The Biden administration introduced final yr it meant to develop a ranking scale of 1 to five stars for rehab amenities on its Care Evaluate web site. The business’s commerce affiliation, the American Medical Rehabilitation Suppliers Affiliation, requested a delay within the creation of star rankings till the present high quality measures have been refined. The Trump administration has not decided whether or not it should proceed the trouble to fee rehab amenities. 

Additionally learn our shopper information to discovering the correct place to get bodily, occupational or speech remedy.

We encourage organizations to republish our content material, freed from cost. Right here’s what we ask:

You should credit score us as the unique writer, with a hyperlink to our kffhealthnews.org web site. If attainable, please embody the unique writer(s) and KFF Well being Information” within the byline. Please protect the hyperlinks within the story.

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It’s essential to notice, not every little thing on kffhealthnews.org is obtainable for republishing. If a narrative is labeled “All Rights Reserved,” we can’t grant permission to republish that merchandise.

Have questions? Tell us at KHNHelp@kff.org

Tags: FederalHospitalInspectionsMedicalOfficialsRehabUnpublicized

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