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March
2002
Medicare Program; Prospective
Payment System for
Long-Term Care Hospitals: Proposed Implementation and FY
2003 Rates; Proposed
Rule
Federal Register / Vol. 67, No.
56 / Friday, March 22, 2002
This proposed rule would establish a
prospective payment system for Medicare payment of inpatient
hospital services furnished by long-term care hospitals (LTCHs)
described in section 1886(d)(1) B)(iv) of the Social Security Act
(the Act). This proposed rule would implement section 123 of
the Medicare, Medicaid, and
SCHIP [State Children's Health Insurance Program] Balanced
Budget Refinement Act (BBRA) of 1999 and section 307(b)of the
Medicare, Medicaid, and SCHIP Benefits Improvement and Protection
Act (BIPA) of 2000. Section 123 of the BBRA directs the Secretary
to develop and implement a prospective payment system for LTCHs.
The prospective payment system described in this proposed rule
would replace the reasonable cost-based payment system under which
the LTCHs are currently paid.

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