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HHS/CMS RIN: 0938-AH55 Publication ID: Fall 1997 
Title: Changes to the Hospital Inpatient Prospective Payment System and Fiscal Year 1998 Rates (BPD-878-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 1998. We will also revise the Medicare hospital inpatient prospective payment systems for operating costs and capital-related costs to implement necessary changes resulting from the Balanced Budget Act of 1997, Public Law 105-33, and changes arising from our continuing experience with the systems. In addition, we will set forth rate-of-increase limits as well as policy changes for hospitals and hospital units excluded from the prospective payment systems. These changes will be applicable to discharges occurring on or after October 1, 1997. 
Agency: Department of Health and Human Services(HHS)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Yes  Unfunded Mandates: No 
CFR Citation: 42 CFR 412    42 CFR 413    42 CFR 489   
Legal Authority: 42 USC 1395ww   
Legal Deadline:
Action Source Description Date
NPRM  Statutory    05/01/1997 
Final  Statutory    09/01/1997 
Action Date FR Cite
NPRM  06/02/1997  62 FR 29902   
NPRM Comment Period End  08/01/1997    
Final Action  10/00/1997    
Additional Information: BPD-878
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: Federal, State 
Small Entities Affected: Businesses, Organizations 
Included in the Regulatory Plan: No 
Agency Contact:
Tzvi Hefter
Director, Division of Acute Care
Department of Health and Human Services
Centers for Medicare & Medicaid Services
C4-07-07, Center for Medicare Management, 7500 Security Boulevard, C4-07-07,
Baltimore, MD 21244
Phone:410 786-4487