May 19, 2003 CMS Proposes to Increase Payment Rates for Rehabilitation Hospitals by 3.3% for FY 2004 The Centers for Medicare & Medicaid Services (CMS) has proposed a 3.3% increase in payment rates in fiscal year (FY) 2004 to inpatient rehabilitation hospitals that care for Medicare beneficiaries recovering from strokes, spinal cord injury, or other conditions requiring extensive therapy. Under the Medicare law, CMS is required to update annually the prospective payments for rehabilitation facilities to reflect changes in the price of goods and services used by these hospitals in caring for Medicare beneficiaries, which . . .