Rehabilitative hospital services are covered by Medicaid for eligible recipients when medically necessary. The care and treatment of the patient must be under the direction of a licensed practitioner (physician or dentist with hospital staff affiliation).

If a stay is determined to be medically unnecessary by the QIO, the Medicaid Peer Review Committee or the Medical Director for the Medicaid Program, Medicaid will not reimburse the physician or the hospital and the patient may not be billed.