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CMS WatchOctober 15, 2026·8 min read

CR 14635 IRF manual update: all required therapies start in the 36-hour window, first IDT meeting by day 4

CMS Transmittal R14001BP (CR 14635, October 15, 2026) writes two FY 2027 IRF coverage requirements into the Medicare Benefit Policy Manual. Every required therapy treatment or evaluation ordered at admission must begin within the 36-hour window, and the first interdisciplinary team meeting is due by day 4.

CMS WatchIRFCR 14635FY 2027documentation
HCC Buddy

By the HCC Buddy Coding Team

Published October 15, 2026

An IRF review desk with a wall clock, a four-day calendar strip, and chart folders for the IRF 36-hour therapy rule
CR 14635 updates the IRF coverage chapter of the Medicare Benefit Policy Manual, effective October 1, 2026. — Illustration: HCC Buddy

Key Takeaways

  • →CMS issued Transmittal R14001BP (Change Request 14635, Pub. 100-02) on October 15, 2026. It revises Medicare Benefit Policy Manual chapter 1, sections 110.1.1, 110.1.3, 110.2.2, and 110.2.5, for inpatient rehabilitation facility (IRF) services, with an October 1, 2026 effective date and a November 17, 2026 implementation date.
  • →Under the FY 2027 IRF PPS final rule, all required therapy treatments and/or therapy evaluations ordered must begin no later than 36 hours from midnight on the day of admission to the IRF. CMS says all required therapies must start in that window, not just one.
  • →For IRF admissions on or after October 1, 2026, the initial interdisciplinary team (IDT) meeting must occur on or before 4 days from the date of admission, with the day of admission counted as day 1. Each later IDT meeting must occur within 7 days of the previous one.
  • →CMS is exercising enforcement discretion on the timing of the initial IDT meeting for IRF admissions from October 1, 2026 through March 31, 2027. During that period MACs will not deny or non-affirm a claim based solely on the timing of the initial IDT meeting if an IDT meeting occurs at least once per week throughout the stay. It does not change the regulation, the other IRF coverage and documentation requirements, or the 36-hour therapy requirement.
  • →R14001BP adds that documentation of the initial IDT meeting should be separate from the patient's plan of care documentation in the IRF medical record.
  • →CMS proposed, but did not finalize, a requirement to document the patient's current functional status in the IRF preadmission screening. The R14001BP preadmission screening edits are wording changes.

On October 15, 2026, CMS issued Transmittal R14001BP, Change Request 14635, which updates chapter 1 of the Medicare Benefit Policy Manual (Pub. 100-02) for inpatient rehabilitation facility (IRF) services. The CR is effective October 1, 2026, with a November 17, 2026 implementation date. CMS says the revisions "address IRF documentation, therapy, and interdisciplinary team requirements."

The manual now carries two coverage requirements CMS finalized in the FY 2027 IRF PPS final rule (91 FR 48982, August 3, 2026). Every required therapy treatment or evaluation ordered at admission has to start inside the 36-hour window, and the first interdisciplinary team (IDT) meeting is due by day 4. For IRF HIM, coding, and pre-bill review staff, both are date-and-time checks on the record.

CR 14635 at a glance

ItemTransmittal R14001BP
TitleInternet Only Manual Updates to Publication (Pub.) 100-02 for Inpatient Rehabilitation Facility (IRF) Services
Change Request14635
IssuedOctober 15, 2026
Effective dateOctober 1, 2026
Implementation dateNovember 17, 2026
Manual sections revisedChapter 1, sections 110.1.1 (preadmission screening), 110.1.3 (plan of care), 110.2.2 (intensive level of rehabilitation services), 110.2.5 (interdisciplinary team)
ContractorsA/B MACs (Part A)
Regulation42 CFR 412.622, as revised by the FY 2027 IRF PPS final rule (effective October 1, 2026)

The CR says CMS will release provider education through the MLN Connects newsletter "shortly after we issue the CR."

Old manual text vs. R14001BP

RequirementBefore CR 14635 (Rev. 10892)R14001BP (Rev. 14001)
Therapy start"the required therapy treatments must begin within 36 hours from midnight of the day of admission""all required therapy treatments must begin no later than 36 hours from midnight on the day of the patient's admission"
First IDT meetingTeam conferences "at least once a week""on or before the fourth day from the date the patient is admitted, with the day of admission being day 1"
Later IDT meetings"held a minimum of once per week""within seven days of the previous one"
Initial IDT documentationNo separate-from-POC instruction"should be separate from a patient's POC documentation in the medical record"
Plan of care timing"within the first 4 days of the IRF admission"Same 4 days, "with the day of admission being day 1"

The 36-hour rule: every required therapy, not just one

The final rule explains why the wording changed. CMS says sub-regulatory guidance it posted in 2010 "may have created ambiguous interpretation" of whether only one therapy or all therapies had to start within 36 hours. CMS also says the plural "treatments" in the prior regulation already "means that all treatments shall be included," and the revision codifies that. The revised regulation reads: "All required therapy treatments and/or therapy evaluations ordered must begin no later than 36 hours from midnight on the day of admission to the IRF."

How CMS counts the window:

  • The clock starts at the midnight that follows the admission. CMS's example: a patient admitted at 2:00 p.m. on Tuesday must have all therapy treatments and/or therapy evaluations started by 12:00 p.m. on Thursday.
  • A therapy evaluation counts as the start of that therapy. The manual says evaluations "are generally considered to constitute the beginning of the required therapy services."
  • The 36-hour requirement covers therapy treatments and/or therapy evaluations ordered at admission. Those orders can come from the rehabilitation physician's concurrence with the therapies identified in the preadmission screening (PAS) or from additional therapies the physician orders at admission. Per question 7 of the CMS FY 2027 IRF final rule FAQ (September 2026), therapies ordered after the rehabilitation physician's initial concurrence with the PAS and admission orders "are not subject to the 36-hour requirement." CMS still encourages IRFs to start those additional therapies as soon as possible, and asks that the record show when each additional therapy was ordered and when it began.
  • CMS did not finalize flexibilities for smaller IRFs or IRFs with staffing shortages.

On enforcement, the final rule says CMS will "continue to determine compliance by conducting audits of IRFs' medical record documentation," and that IRF claims for admitted patients who cannot tolerate an intensive therapy program "may be denied by CMS."

First IDT meeting by day 4, then every 7 days

The revised regulation, 42 CFR 412.622(a)(5)(ii), requires the initial IDT meeting "on or before 4 days from the date the patient is admitted." CMS counts the day of admission as day 1. Its example: a patient admitted on a Thursday needs the initial IDT meeting before the end of the day on Sunday. The rule applies to admissions on or after October 1, 2026.

Enforcement discretion through March 31, 2027. On its IRF PPS page, CMS says it is exercising enforcement discretion on the timing of the initial IDT meeting for IRF admissions from October 1, 2026 through March 31, 2027. During that period, MACs will not deny or non-affirm a claim based solely on the timing of the initial IDT meeting if an IDT meeting occurs at least once per week throughout the patient's stay, and they will apply the initial-meeting timing requirement that was in effect during FY 2026. All other IRF coverage and documentation requirements stay in effect. The discretion covers only the timing of the initial IDT meeting. It does not change the regulation and does not apply to the 36-hour therapy requirement.

Some details that matter on review:

  • CMS proposed counting the 4 days "from midnight" on the admission date and did not finalize that version. The final count runs from the date of admission.
  • Commenters asked to move a weekend or holiday day 4 to the next business day. CMS did not adopt that request in the final rule.
  • The date of the initial meeting sets the schedule. Each later meeting must occur at least once per week after the prior meeting, and the regulation now defines a week as "a period of 7 consecutive calendar days."
  • The rehabilitation physician leads the meeting, in person or remotely, and must document concurrence with all decisions made at each meeting. The final rule says only rehabilitation physicians may join remotely, and all other team members must attend in person.
  • The manual says documentation of each team conference should generally include the names and professional designations of the participants. Signatures other than the rehabilitation physician's concurrence are not required.

The day 4 deadline also matches the plan of care. R14001BP says the overall plan of care must be completed within the first 4 days, "with the day of admission being day 1." The manual drops its old line that holding the first IDT meeting within 4 days "may be good practice" and states the requirement instead.

What did not change in the preadmission screening

CMS proposed requiring the preadmission screening (PAS) to document the patient's current functional status. The final rule says CMS "will not be finalizing this proposal." The section 110.1.1 edits in R14001BP are wording: the manual now abbreviates preadmission screening as PAS and adds "as applicable" after the list of needed treatments. The 48-hour PAS window and the rehabilitation physician's documented concurrence before admission stay the same.

What this is not

It is not a payment rate update. The FY 2027 IRF rates and case-mix group relative weights come from the final rule and its October 1, 2026 correction notice (CMS-1845-CN). CMS says that notice corrects wage index and related technical errors and "does not make substantive changes to the policies or payment methodologies."

CR 14635 does not change ICD-10-CM codes, case-mix group assignments, or HCCs. The final rule also summarized comments on a request for information about future IRF payment reform, including diagnosis-based grouping similar to the SNF Patient Driven Payment Model. That was a request for information, not an FY 2027 payment change.

It is not an NCCI update.

For ICD-10-CM wording on the diagnoses in an IRF record, use the encoder or code book. The 36-hour and IDT rules come from 42 CFR 412.622 and Medicare Benefit Policy Manual chapter 1, section 110, not from a code lookup.

What coders should do now

  1. 1For IRF admissions on or after October 1, 2026, check that every required therapy treatment or evaluation ordered at admission has a documented start no later than 36 hours after the midnight following admission. CMS says starting only one discipline on time does not meet the requirement.
  2. 2For IRF admissions on or after October 1, 2026, count day 1 as the admission date and confirm the initial IDT meeting is documented on or before day 4, including weekend and holiday admissions. For admissions from October 1, 2026 through March 31, 2027, a late initial meeting alone is not a claim denial reason under CMS's enforcement discretion if IDT meetings occur at least weekly, but the requirement itself still stands.
  3. 3Look for initial IDT documentation that stands apart from the plan of care note, with participant names and professional designations and the rehabilitation physician's concurrence with the team's decisions.
  4. 4Check that each later IDT meeting falls within 7 days of the prior one, counting 7 consecutive calendar days.
  5. 5Update IRF chart audit checklists and pre-bill edits that still say the first team conference is due within the first week (keep the weekly-meeting check for the enforcement discretion period), or that only one therapy must start within 36 hours.

Frequently Asked Questions

What is CMS Change Request 14635?

CR 14635 is Transmittal R14001BP, issued October 15, 2026. It updates Medicare Benefit Policy Manual chapter 1, sections 110.1.1, 110.1.3, 110.2.2, and 110.2.5, to reflect FY 2027 IRF policy changes on documentation, therapy timing, and the interdisciplinary team. It is effective October 1, 2026, with a November 17, 2026 implementation date.

Does the IRF 36-hour rule apply to one therapy or all required therapies?

It applies to all therapies ordered at admission, not just one. The FY 2027 IRF PPS final rule revised 42 CFR 412.622(a)(3)(ii) so that all therapy treatments and/or therapy evaluations ordered at admission must begin no later than 36 hours from midnight on the day of admission. Those orders can come from the rehabilitation physician's concurrence with the preadmission screening (PAS) or from additional therapies the physician orders at admission. Per question 7 of the CMS FY 2027 IRF final rule FAQ, therapies ordered after the rehabilitation physician's initial concurrence with the PAS and admission orders are not subject to the 36-hour requirement, even if they are ordered before the window closes.

How do you count day 4 for the initial IRF IDT meeting?

The day of admission is day 1. CMS's example is a Thursday admission, which needs the initial IDT meeting before the end of the day on Sunday. CMS did not finalize a version that counted from midnight on the admission date, and it did not add a next-business-day option for weekends or holidays.

Can IRF IDT members attend the meeting remotely?

The rehabilitation physician who leads the meeting may attend in person or remotely, for example by video or telephone. The FY 2027 final rule says only rehabilitation physicians may participate remotely and all other team members must attend in person.

Did CMS add a current functional status requirement to the IRF preadmission screening?

No. CMS proposed requiring the PAS to document the patient's current functional status but did not finalize it in the FY 2027 IRF PPS final rule. The PAS still has to be conducted within the 48 hours before admission, or updated within that window, and reviewed by the rehabilitation physician before admission.

Related topics:CMS WatchIRFCR 14635FY 2027documentation
HCC Buddy

HCC Buddy Coding Team

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