Medicare and Medicaid programs; schedules of guidelines for physical therapy and respiratory therapy services--HCFA....

This notice establishes revised schedules of salary equivalency guidelines for Medicare reimbursement for the reasonable costs of physical therapy and respiratory therapy services furnished under an arrangement by an outside contractor except for inpatient hospital services paid for under the new prospective payment system or reimbursed under the rate of increase limits. The schedules are used by Medicare fiscal intermediaries to determine the maximum allowable cost of those services. We are revising the methodology used to establish the schedules, and we are updating the guideline amounts to account for increases in inflation. The guidelines also apply to certain State Medicaid programs. Under the prospective payment regulations and conforming changes implementing Pub. L. 98--21 (published September 1, 1983, 48 FR 39752), effective with cost reporting periods beginning on or after October 1, 1983, we eliminated the salary equivalency guidelines for physical and respiratory therapy services provided as inpatient hospital services. The guidelines will continue to apply to outpatient hospital services and to services furnished by other providers.