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Medicare program; schedule of limits on hospital per diem inpatient general routine operating costs--Health Care
Abstract:
This notice sets forth a schedule of limits on hospital per deim inpatient general routine operating costs that may be reimbursed under Medicare beginning October 1, 1981. This is a special revision of the schedule, not an annual update, and replaces the current schedule, which was published in the Federal Register on June 30, 1981 (46 FR 33637). It incorporates two changes required by the Omnibus Budget Reconciliation Act of 1981: . The limits are lowered from 112 percent of mean costs to 108 percent; and . The limits are revised to reflect a reduction in the nursing salary differential. As required by statute, this notice also has a special provision for its effective date.
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.