Physical rehabilitation hospitals are a crucial part of the healthcare industry, specializing in providing intensive therapy for patients recovering from various medical conditions. However, a recent investigation by KFF Health News and The New York Times has revealed that federal health officials do not inform consumers about severe safety violations in these hospitals, nor does Medicare impose fines or provide easy-to-understand ratings like it does for other healthcare facilities.
According to data from the Medicare Payment Advisory Commission (MedPAC), for-profit rehabilitation hospitals have become increasingly profitable, with profit margins exceeding those of general hospitals and skilled nursing homes. Despite their financial success, research has shown that for-profit rehab hospitals tend to have higher rates of patients being readmitted to general hospitals compared to nonprofit facilities.
In 2023, for-profit rehabilitation hospitals surpassed nonprofits as the places with the highest annual patient admissions. These facilities are required to provide a minimum of three hours of therapy per day, five days a week. However, Congress has not authorized Medicare to fine rehab hospitals for violations uncovered during inspections, even in cases where serious harm or death occurred.
Unlike nursing homes, which have faced fines for violations, rehab hospitals have limited oversight and accountability measures in place. While Medicare can withhold payment to rehab facilities for certain issues, such as patients being readmitted to general hospitals during rehab stays, there are no financial penalties for hospitalizations of recently discharged rehab patients for critical health issues.
The Biden administration had announced plans to develop a rating scale of 1 to 5 stars for rehab facilities on the Care Compare website, but the industry’s trade association has requested a delay in the creation of star ratings until current quality measures are refined. It remains to be seen if the Trump administration will continue this effort to rate rehab facilities.
Overall, the lack of transparency and accountability in physical rehabilitation hospitals raises concerns about patient safety and quality of care. Consumers are urged to carefully research and choose the right facility for physical, occupational, or speech therapy based on available information and recommendations.
