Fiscal Year 2002 Medicare Inpatient Prospective Payment System: Final Rule
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Related Resources
AAMC Documents
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Current Status as of November 27, 2001
On August 1, 2001, The Center for Medicare and Medicaid Services
(CMS) published a final rule [66 FR 39827] which makes changes to
the Inpatient Prospective Payment System (PPS) for federal fiscal
year 2002. The changes in the rule are effective October
1, 2001. The AAMC submitted comments
on the proposed rule, and prepared a summary
of it.
Final Rule
The final rule, published August 1, 2001, in the Federal
Register, is available in six parts in text format and Portable
Document Format (PDF):
42 CFR Parts 405, 410, 412, et al. Medicare Program;
Changes to the Hospital Inpatient Prospective Payment Systems
and Rates and Costs of Graduate Medical Education; Fiscal
Year 2002 Rates, etc.; Final Rules
- Part I [pp.39827-39876]: Text
/ PDF
- Part II [pp.39877-39926]: Text
/ PDF
- Part III [pp.39927-39976]: Text
/ PDF
- Part IV [pp.39977-40026]: Text
/ PDF
- Part V [pp. 40027-40076]: Text
/
PDF
- Part VI [pp.40077-40102]: Text
/ PDF
Background
The final rule contains several changes to the direct GME and IME
regulations, including:
- Hospitals with a per resident amount less than 85 percent
of the locality adjusted national per resident amount will
have their per resident amount increased to 85 percent;
and;
- If the relevant criteria are met, hospitals may receive
a temporary adjustment to their FTE cap to reflect residents
added because of the closure of another hospital's residency
program; provided that the hospital that has its closed
its program agrees to temporarily reduce its FTE cap.
Under the final rule hospitals will experience a 2.75 percent
payment increase beginning with discharges on or after October
1, 2001. This increase is 0.20 percent higher than
proposed increase in the May 4 proposed rule because of an increase
in the hospital market basket (a measure of hospital inflation).
Under current law, the PPS update is set at market basket minus
0.55 percentage points. The new market basket estimate
is 3.3 percent.
CMS chose not to include a payment methodology for new technology,
which was part of the May 4, 2001, proposed rule. In order
to address the large number of comments received on
this issue CMS will publish a separate rule later this summer.
CMS plans to establish a payment methodology for new technology
by Oct. 1, 2001; however, no payments will be made under the
new methodology during fiscal year 2002.
Contacts
Karen Fisher, Senior Associate Vice President
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140
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