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Medicare program; schedule of limits on hospital per diem inpatient general routine operating costs--Health Care

    Federal Register
    |September 7, 1981
    PubMed

    Insights

    Medicare hospital inpatient operating cost limits were revised in October 1981 due to the Omnibus Budget Reconciliation Act. Limits decreased from 112% to 108% of mean costs, with adjustments for nursing salary differentials.

    Area of Science:

    • Health Policy
    • Healthcare Economics
    • Hospital Administration

    Background:

    • Medicare reimbursement is governed by specific operating cost limits for hospitals.
    • Previous schedules for these limits were established and published, with the last annual update on June 30, 1981.
    • The Omnibus Budget Reconciliation Act of 1981 mandated specific changes to these reimbursement limits.

    Purpose of the Study:

    • To announce a special revision to the schedule of hospital inpatient general routine operating cost limits.
    • To implement changes mandated by the Omnibus Budget Reconciliation Act of 1981 regarding Medicare reimbursement.
    • To establish new reimbursement limits effective October 1, 1981.

    Main Methods:

    • The revision involved lowering the reimbursement limit percentage.
    • Adjustments were made to reflect changes in the nursing salary differential.
    • The new schedule replaces the previously published schedule.

    Main Results:

    • The hospital per diem inpatient general routine operating cost reimbursement limits were reduced.
    • The upper limit was lowered from 112 percent of mean costs to 108 percent.
    • The nursing salary differential component of the limits was revised.

    Conclusions:

    • The revised Medicare reimbursement limits aim to control hospital operating costs.
    • These changes reflect legislative action to modify healthcare spending.
    • The updated schedule provides new financial parameters for hospitals starting October 1, 1981.

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