Medicare Benefit Policy Manual (Pub. 100-02), Ch. 8 § 70.3
Inpatient Physical Therapy, Occupational Therapy, and Speech-
70.3 - Inpatient Physical Therapy, Occupational Therapy, and Speech-
Language Pathology Services
(Rev. 37, Issued: 08-12-05; Effective/Implementation: 09-12-05)
Under Part A, physical therapy, occupational therapy, and speech pathology services are
included in the SNF PPS rate for cost reporting periods beginning on or after July 1,
1998. For inpatient Part B residents and outpatient services, payment for such services is
under a fee schedule. The SNF must bill for physical therapy, occupational therapy, or
speech-language pathology services for Part A residents beginning with its first cost
reporting period that starts on or after July 1, 1998, and for Part B for services furnished
on or after July 1, 1998. The SNF (rather than an outside provider/supplier such as an
approved clinic or rehabilitation agency, or a participating hospital) bills Medicare.
Payment is made directly to the SNF. The patient is responsible only for applicable Part
A coinsurance or the Part B deductible and coinsurance amounts.
See also the Medicare Benefit Policy Manual, Chapter 1, “Inpatient Hospital Services.”