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Medicare program; changes to the return on equity capital provisions for outpatient hospital services--HCFA. Final
Federal Register
|March 21, 1988
Abstract:
We are revising the Medicare regulations to eliminate the allowance for a return on equity capital for outpatient services furnished by proprietary hospitals as required by section 4065 of the Omnibus Budget Reconciliation Act of 1987 (enacted on December 22, 1987). Section 4065 prohibits recognition of any return on equity capital with respect to hospital outpatient departments effective January 1, 1988.
Insights
Medicare regulations are changing to remove return on equity capital for proprietary hospital outpatient services. This change, effective January 1, 1988, follows Section 4065 of the Omnibus Budget Reconciliation Act of 1987.
Area of Science:
- Health Policy
- Healthcare Economics
- Medical Regulation
Background:
- Proprietary hospitals historically received a return on equity capital for outpatient services under Medicare.
- The Omnibus Budget Reconciliation Act of 1987 mandated changes to this policy.
Purpose of the Study:
- To revise Medicare regulations to eliminate the allowance for return on equity capital for outpatient services.
- To implement the requirements of Section 4065 of the Omnibus Budget Reconciliation Act of 1987.
Main Methods:
- Regulatory revision process.
- Implementation of legislative mandate.
Main Results:
- Elimination of return on equity capital allowance for proprietary hospital outpatient services.
- Effective date of January 1, 1988, for the regulatory change.
Conclusions:
- The revision aligns Medicare regulations with the legislative prohibition of return on equity capital for hospital outpatient departments.
- This regulatory change impacts financial reimbursement for proprietary hospitals providing outpatient services.