Medicare program; prospective payments for Medicare inpatient hospital services--HCFA. Interim final rule with comment period.

This interim final rule sets forth the revised conditions and procedures for making Medicare payments to hospitals for inpatient services, effective with cost reporting periods that begin on or after October 1, 1983. It also contains certain provisions effective on October 1, 1983 for all providers. This rule is needed to implement the Social Security Amendments of 1983 (Pub. L. 98-21), which change the method of payment for inpatient hospital services from a cost-based, retrospective reimbursement system to a diagnosis specific prospective payment system. The new system will be phased in over a three-year period and is primarily intended to provide incentives to hospitals to manage their operations in a more cost-effective manner. The attached addendum sets forth the schedule of standardized amounts and relative weights applicable for cost reporting periods beginning on or after October 1, 1983 and before October 1, 1984.