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Complexity, caution mark start of PPS for capital
Abstract:
The Health Care Financing Administration's revised and highly complex method of paying for inpatient capital costs includes broadened provisions for old capital, a series of payment "floors" for especially vulnerable facilities, and other changes meant to address industry criticism. But a villain known as budget neutrality inevitably led to reductions in some areas. During the system's 10-year transition, one prominent concern will center on how the Federal rate will be set and adjusted.
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