Health Care Financing Administration: Medicare Program--Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 2001 Rates Page: 3 of 4
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ENCLOSURE
ANALYSIS UNDER 5 U.S.C. 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES,
HEALTH CARE FINANCING ADMINISTRATION
ENTITLED
"MEDICARE PROGRAM; CHANGES TO THE HOSPITAL INPATIENT
PROSPECTIVE PAYMENT SYSTEMS AND FISCAL YEAR 2001 RATES"
(RIN: 0938-AK09)
(i) Co st-benefit analysis and agency actions relevant to the Regulatory Flexibility
Act, 5 U.S.C. 603-605, 607, and 609
Section 1102(b) of the Social Security Act, 42 U.S.C. 1302(b), requires the Secretary
of Health and Human Services to prepare regulatory impact analyses for any rule
that may have a significant impact on the operations of a substantial number of
small, rural hospitals. An initial analysis, to be prepared for a proposed rule, is to
describe the impact of the proposed rule on such hospitals and include the matters
required under 5 U.S.C. 603. The final analysis, to be prepared for a final rule, must
include, with respect to small, rural hospitals, the matters required under 5 U.S.C.
604. HCFA determined that the proposed rule would affect a substantial number of
small, rural hospitals, and that the effects on some could be significant. HCFA also
determined that the rule could have a significant impact on other classes of hospitals
as well. HCFA considers most hospitals to be small entities for purposes of the
Regulatory Flexibility Act. Therefore, HCFA has prepared a combined regulatory
impact/regulatory flexibility analysis in connection with the rule, which was
contained in Appendix A to the final rule.
HCFA estimates that the impact of the final rule will be to increase payments to
hospitals by approximately $1.5 billion in fiscal year 2001. In addition, the changes
relating to the Medicare inpatient disproportionate share hospitals adjustment
calculation are estimated at $350 million for fiscal year 2001.
The final analysis explains the reasons and objectives, as well as the legal bases, for
the final rule. It also describes and estimates the number of small entities to which
the rule will apply. The prospective payment system will apply to 4,933 hospitals or
about 80 percent of all Medicare-participating hospitals. The remaining 20 percent
are specialty hospitals (psychiatric, rehabilitation, long-term care, children's, and
cancer hospitals) that are excluded from the prospective payment system and
continue to be paid on the basis of reasonable costs.
The final analysis provides both a quantifiable description of the effect of the rule
and general descriptive statements if quantification is not practicable or reliable.GAO/OGC-00-56
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United States. General Accounting Office. Health Care Financing Administration: Medicare Program--Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 2001 Rates, text, August 15, 2000; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc291560/m1/3/: accessed March 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.