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Unified Agenda 0938-AR12

Changes to the Hospital Inpatient an Long-Term Care Prospective Payment System for FY 2013 (CMS-1588-P)

Summary

This annual major proposed rule would revise the Medicare hospital inpatient and long-term care hospital prospective payment systems for operating and capital-related costs. This proposed rule would implement changes arising from our continuing experience with these systems.

Statement of need

CMS annually revises the Medicare hospital inpatient prospective payment systems (IPPS) for operating and capital-related costs to implement changes arising from our continuing experience with these systems. In addition, we describe the proposed changes to the amounts and factors used to determine the rates for Medicare hospital inpatient services for operating costs and capital-related costs. Also, CMS annually updates the payment rates for the Medicare prospective payment system (PPS) for inpatient hospital services provided by long-term care hospitals (LTCHs). The proposed rule solicits comments on the proposed IPPS and LTCH payment rates and new policies. CMS will issue a final rule containing the payment rates for the FY 2013 IPPS and LTCHs at least 60 days before October 1, 2012.

Legal Basis

The Social Security Act (the Act) sets forth a system of payment for the operating costs of acute care hospital inpatient stays under Medicare Part A (Hospital Insurance) based on prospectively set rates. The Act requires the Secretary to pay for the capital-related costs of hospital inpatient and Long Term Care stays under a PPS. Under these systems, Medicare payment for hospital inpatient and Long Term Care operating and capital-related costs is made at predetermined, specific rates for each hospital discharge. These changes would be applicable to services furnished on or after October 1, 2012.

Alternatives

None. This implements a statutory requirement.

Costs and Benefits

Total expenditures will be adjusted for FY 2013.

Risks

If this regulation is not published timely, inpatient hospital and LTCH services will not be paid appropriately beginning October 1, 2012.

Timeline

1 action from April 2012

  • April 2012
    • NPRM

Contacts

  • Ankit Patel
    Health Insurance Specialist, Division of Acute Care
    Phone 410 786-4537
    Hospital and Ambulatory Policy Group, Mail Stop, C4-25-11, 7500 Security Boulevard,
    Baltimore MD 21244

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