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Medicare program; elimination of periodic interim payments for hospitals--HCFA. Final rule
Abstract:
With certain exceptions, we are eliminating the periodic interim payment method for inpatient hospital services for prospective payment hospitals effective with discharges occurring on or after July 1, 1987 and for all other hospitals effective with covered services furnished on or after July 1, 1987. We believe that the elimination of this method of payment will encourage hospitals to submit their bills on a more timely basis and will also allow the Medicare fiscal intermediaries to use their resources more effectively in making payments to hospitals.
Insights
The periodic interim payment method for inpatient hospital services is being eliminated for most hospitals starting July 1, 1987. This change aims to improve billing timeliness and Medicare fiscal intermediary efficiency.
Area of Science:
- Healthcare Administration
- Health Economics
- Public Health Policy
Background:
- The periodic interim payment (PIP) method was a payment system for inpatient hospital services.
- This system had exceptions and applied to various hospital types.
Purpose of the Study:
- To announce the elimination of the periodic interim payment (PIP) method for inpatient hospital services.
- To inform healthcare providers of the effective dates for this policy change.
- To outline the anticipated benefits of eliminating the PIP method.
Main Methods:
- Policy change announcement regarding payment methods.
- Implementation of new effective dates for hospital billing and payment.
Main Results:
- Elimination of the periodic interim payment (PIP) method for prospective payment hospitals (discharges on or after July 1, 1987).
- Elimination of the PIP method for all other hospitals (covered services on or after July 1, 1987).
Conclusions:
- The elimination of the PIP method is expected to incentivize more timely hospital bill submissions.
- This policy change is anticipated to enhance the efficiency of Medicare fiscal intermediaries in processing hospital payments.