IPPS Standardized Payment Amounts Effective 4/1/2003

Home Provider Part A Business Areas

URBAN/RURAL Standardized Payment Amounts Under the Medicare Inpatient Hospital Prospective Payment System (IPPS)

Per CMS PM A-03-023, CR#2661

The standardized amounts for large urban areas are revised slightly because of the recalculation of the budget neutrality factors as a result of wage index corrections in PM A-02-92. In conjunction with the new standardized amount, the PM also announces new capital rates to be effective April 1, 2003. The Puerto Rico-specific capital rate is unchanged.

The following standardized amounts and capital rates are effective for discharges occurring on or after April 1, 2003, and before October 1, 2003 are:

Revised FY 2003 National Operating Rates

National Large Urban Areas Other Areas
Labor-related Nonlabor-related Labor-related Nonlabor-related
$3,022.31 $1,228.48 $3,022.31 $1,228.48

Revised FY 2003 Puerto Rico Operating Rates

National PR Large Urban Areas Other Areas
Labor-related Nonlabor-related Labor-related Nonlabor-related
$3,022.31 $1,228.48 $3,022.31 $1,228.48
Puerto Rico $1,464.28 $589.41 $1,441.10 $580.08

Revised FY 2003 Capital Rates

National $406.93

As a result of the behaviors described in our March 5, 2003 proposed rule (68 FR 10420), and based upon preliminary data regarding outlier payments for the first quarter of FY 2003, we believe it is likely that we have continued to overpay for outliers during the first quarter of FY 2003. Accordingly, the outlier threshold is unchanged at $33,560.

Page Last Updated: Wednesday, 31-Dec-2008 10:49:09 CST