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Government Affairs Home > Teaching Hospitals > Medicare Inpatient PPS

FY 2004 Medicare Inpatient PPS Final Rule

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Current Status

On August 1, 2003 the Centers for Medicare and Medicaid Services (CMS) published the final rule (68 Fed Reg 45346) updating the Medicare inpatient prospective payment system for federal fiscal year 2004. The AAMC will prepare a summary and analysis of the final rule.

Highlights

In the final rule, CMS lowered the outlier threshold for FY 2004 to $31,000. CMS decided to maintain the proposed provision expanding the number of diagnosis related groups (DRGs) subject to the post-acute care transfer policy by 19. The base per case payment rate for hospitals will be increased by the full market basket of 3.4 percent. More>>

The final rule maintains most of the GME community support proposals that were included in the proposed rule. However, there will be NO RETROACTIVITY. This means there will be no disallowances until October 1, 2003 for residents that violate the community support / redistribution of costs principles. In addition, residents who are currently in training and who otherwise would violate the principles may continue to be counted by the hospital until those residents complete their training, or for three years, whichever comes first. More>>

Final Rule

The final rule, published August 1, 2003, in the Federal Register, is available in text format and Portable Document Format (PDF)

42 CFR Parts 412 and 413 Medicare Program: Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 2004 Rates; Final Rule

Part I [pp. 45345–45672] Text / PDF

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Contacts

Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

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