High-Cost Outlier ThresholdSince 2023, CMS has steadily increased the costs absorbed by the provider for high-cost outliers by increasing the threshold required to receive additional payments.
Margin DeclineOutpatient Rehab AEBITDA margin was 7.4%, which was down 170 basis points year over year and potentially related to the pressure on revenue per visit.
Payor Mix PressureOutpatient Rehab AEBITDA declined 14.5% due to an unfavorable shift in payer mix.