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HHS/CMS RIN: 0938-AH34 Publication ID: Fall 1996 
Title: Changes to the Hospital Inpatient Prospective Payment System and Fiscal Year 1997 Rates (BPD-847-F) 
Abstract: Medicare pays for hospital inpatient services under a prospective payment system (PPS) in which payment is made at a predetermined specific rate for the operating and capital-related costs associated with each discharge. These rules announce the prospective payment rates for operating and capital-related costs for FY 1997. We also revise the Medicare hospital inpatient prospective payment systems for operating costs and capital-related costs to implement necessary changes arising from our continuing experience with the system. In addition, we set forth rate-of-increase limits as well as policy changes for hospitals and hospital units excluded from the prospective payment systems. These changes are applicable to discharges occurring on or after October 1, 1996. 
Agency: Department of Health and Human Services(HHS)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Completed Actions 
Major: Yes  Unfunded Mandates: No 
CFR Citation: 42 CFR 412    42 CFR 413   
Legal Authority: 42 USC 1395ww   
Legal Deadline:
Action Source Description Date
Final  Statutory    09/01/1996 
NPRM  Statutory    05/01/1996 
Timetable:
Action Date FR Cite
NPRM  05/31/1996  61 FR 27444   
Final Action  08/30/1996  61 FR 46166   
Final Action Effective  10/01/1996  61 FR 51217   
Additional Information: BPD-847
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: Federal, State 
Small Entities Affected: Businesses, Organizations 
Included in the Regulatory Plan: No 
Agency Contact:
Charles Booth
Director, Office of Hospital Policy, Bureau of Policy Development
Department of Health and Human Services
Centers for Medicare & Medicaid Services
C5-02-23, 7500 Security Boulevard,
Baltimore, MD 21244-1850
Phone:410 786-4487