Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year 2018 Rates; Quality Reporting Requirements for Specific Providers; Medicare and Medicaid Electronic Health Record (EHR) Incentive Program Requirements for Eligible Hospitals, Critical Access Hospitals, and Eligible Professionals; Provider-Based Status of Indian Health Service and Tribal Facilities and Organizations; Costs Reporting and Provider Requirements; Agreement Termination Notices; Correction, 46138-46163 [2017-21325]
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[FR Doc. 2017–21246 Filed 10–3–17; 8:45 am]
II. Summary of Errors
BILLING CODE 6560–50–P
A. Summary of Errors in the Preamble
On page 37990, we are making a
conforming correction, removal of the
reference to part 488, based on the
removal of the regulations text for
§ 488.5 described in section II.B. of this
correcting document.
On pages 38067 and 38068, we are
correcting technical errors in our
discussion and summary of and
response to public comment regarding
ICD–10–PCS procedure codes
describing procedures involving
percutaneous insertion of intraluminal
or monitoring device. Specifically, we
erroneously referred to a count of 28
procedure codes describing procedures
involving the percutaneous insertion of
intraluminal and monitoring devices
into central nervous system and other
cardiovascular body parts rather than 18
procedure codes. Of the 28 codes listed
in Table 6P.4b associated with the
proposed rule, 10 procedure codes were
duplicative, and erroneously included
in the table and in the total number of
codes referenced in the preamble. As
indicated in the final rule, after
consideration of the public comments
we received, we maintained the
designation of 15 procedure codes
identified by the commenters. For this
reason, we are also correcting Table
6P.4b associated with the final rule (as
discussed in section II.E. of this
correcting document) to reflect the 3
distinct procedure codes for which we
finalized a change in designation,
including to remove the listings of ICD–
10–PCS procedure codes 00H032Z
(Insertion of Monitoring Device into
Brain, Percutaneous Approach) and
00H632Z (Insertion of Monitoring
Device into Cerebral Ventricle,
Percutaneous Approach), which we
finalized to maintain as O.R. procedures
for FY 2018, and are making conforming
changes to the corresponding count of
codes listed in that table as indicated on
page 38068. Consistent with these
corrections, we are also correcting the
description of the proposal on page
38067 of the final rule. As a result of the
corrections to Table 6P.4b associated
with the final rule and the conforming
corrections on pages 38067 and 38068,
we have made conforming changes to
the ICD–10 MS–DRG Definitions
Manual Version 35 and ICD–10 MS–
DRG Grouper Software Version 35 for
FY 2018 to reflect the O.R. designation
of ICD–10–PCS procedure codes
00H032Z (Insertion of Monitoring
Device into Brain, Percutaneous
Approach) and 00H632Z (Insertion of
Monitoring Device into Cerebral
Ventricle, Percutaneous Approach), as
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
42 CFR Parts 405, 412, 413, 414, 416,
486, 488, 489, and 495
[CMS–1677–CN]
RIN–0938–AS98
Medicare Program; Hospital Inpatient
Prospective Payment Systems for
Acute Care Hospitals and the LongTerm Care Hospital Prospective
Payment System and Policy Changes
and Fiscal Year 2018 Rates; Quality
Reporting Requirements for Specific
Providers; Medicare and Medicaid
Electronic Health Record (EHR)
Incentive Program Requirements for
Eligible Hospitals, Critical Access
Hospitals, and Eligible Professionals;
Provider-Based Status of Indian Health
Service and Tribal Facilities and
Organizations; Costs Reporting and
Provider Requirements; Agreement
Termination Notices; Correction
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Final rule; correction.
AGENCY:
This document corrects
technical and typographical errors in
the final rule that appeared in the
August 14, 2017, issue of the Federal
Register, which will amend the
Medicare hospital inpatient prospective
payment systems (IPPS) for operating
and capital related costs of acute care
hospitals to implement changes arising
from our continuing experience with
these systems for FY 2018.
DATES: This correction is effective
October 1, 2017.
FOR FURTHER INFORMATION CONTACT:
Donald Thompson, (410) 786–4487.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
In FR Doc. 2017–16434 of August 14,
2017 (82 FR 37990) there were a number
of technical and typographical errors
that are identified and corrected by the
Correction of Errors section of this
correcting document. The provisions in
this correcting document are effective as
if they had been included in the
document that appeared in the August
14, 2017 Federal Register. Accordingly,
the corrections are effective October 1,
2017.
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finalized on page 38068 of the final rule
for FY 2018.
In addition, after publication of the
FY 2018 IPPS/LTCH PPS final rule, we
became aware that the logic for the ICD–
10 MS–DRG Definitions Manual Version
35 and the ICD–10 MS–DRG Grouper
and Medicare Code Editor (MCE)
Version 35 Software erroneously
designated the following ICD–10–PCS
procedure code as a non-O.R. procedure
rather than as an O.R. procedure as
finalized on page 38072 of the final rule
for FY 2018: 0BCC8ZZ (Extirpation of
matter from right upper lung lobe, via
natural or artificial opening
endoscopic). Therefore, we also made
changes to the ICD–10 MS–DRG
Definitions Manual Version 35 and the
ICD–10 MS–DRG Grouper and MCE
Version 35 Software to correctly reflect
the O.R. designation for this procedure
code for FY 2018.
We recalculated the FY 2018 MS–
DRG relative weights (and associated
statistics, such as average length of stay
(ALOS)) as a result of the corrections to
the logic for the ICD–10 MS–DRG
Grouper Version 35 Software discussed
above. In addition, since the MS–LTC–
DRGs used under the LTCH PPS for FY
2018 are the same as the MS DRGs used
under the IPPS for FY 2018 (and as such
use the same ICD–10 MS–DRG Grouper
Version 35 Software), we also
recalculated the FY 2018 MS–LTC–DRG
relative weights (and associated
statistics, such as geometric ALOS) for
the same reasons.
On page 38119, we made a technical
error in describing which ICD–10–PCS
procedure codes will be used to identify
cases involving ZINPLAVATM that are
eligible for new technology add-on
payments in FY 2018. Specifically,
cases involving ZINPLAVATM that are
eligible for new technology add-on
payments will be identified by either of
the ICD–10–PCS procedure codes listed
in the final rule (XW033A3 or
XW043A3) (rather than requiring the
combination of both ICD–10–PCS
procedure codes).
On pages 38132 and 38137, in our
discussion of the wage indexes, we
provided incorrect values for the FY
2018 national average hourly wage
(unadjusted for occupational mix) and
the FY 2018 occupational mix adjusted
national average hourly wage due to
inadvertent errors related to the wage
data collected from the Medicare cost
reports of six hospitals (CMS
Certification Numbers (CCNs) 240010,
420033, 420037, 420038, 420078, and
420102).
On page 38144, we made an
inadvertent error in the mailing address
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for the Medicare Geographic Review
Board (MGCRB).
On page 38195, in our discussion
regarding disproportionate share
hospitals (DSHs), we made errors in the
June 2017 Office of the Actuary’s
estimate for FY 2018 Medicare DSH
payments.
On page 38225, we made
typographical errors in our description
of several Hospital Readmissions
Reduction Program (HRRP) measures.
On page 38249, in our response to a
comment, we advertently referenced the
MORT–30–PN measure, instead of the
PN Payment measure.
On page 38257 through 38259, in our
discussion of the Hospital Value-Based
Purchasing (HVBP) Program, we made
several typographical and technical
errors to references and dates.
On pages 38309 and 38310, we are
correcting the MS–LTC–DRG
normalization factor and the MS–LTC
DRG budget neutrality factor based on
the recalculation of the MS–LTC–DRG
relative weights due to the corrections
to the MS–DRG Grouper Software
Version 35 described previously.
(Because the MS–LTC–DRGs used under
the LTCH PPS are the same as the MS–
DRGs used under the IPPS, the
corrections to the MS–DRG Grouper
Software Version 35 described
previously affect the MS–LTC–DRGs
groupings by extension.)
On pages 38426, 38434, 38440, and
38458, in our discussion of the LTCH
Quality Reporting Program (QRP), we
made technical and typographical errors
including an error in our description of
a quality measure.
B. Summary of Errors in the Regulations
Text
On page 38516, we inadvertently
retained regulations language from the
proposed rule at § 488.5(a)(21),
regarding accrediting organizations,
after stating in the preamble of the final
rule that we had decided not to adopt
such language. In addition, on page
38509, we inadvertently retained a
description of subjects set out in 42 CFR
part 488 in the ‘‘List of Subjects.’’ We
are correcting these errors by removing
the description of subjects, amendatory
instructions, and regulations text for
part 488.
On page 38516, in the regulations text
provisions for § 495.4 (definitions for
the Electronic Health Record (EHR)
Incentive Program), we inadvertently
omitted the definition of certified
electronic health record technology
(CEHRT) for 2018.
On page 38517, in the regulations text
provisions for § 495.24, we
inadvertently omitted an EHR measure
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change for eligible professionals (EPs) in
§ 495.24(d)(6)(i)(B)(1)(iv).
C. Summary of Errors in the Addendum
As discussed in section II.A. of this
correcting document, we are making
corrections to the logic for the ICD–10
MS–DRG Grouper Version 35 Software
for three ICD–10–PCS procedure codes
(0BCC8ZZ, 00H032Z and 00H632Z) that
had been erroneously designated as
non-O.R. procedures rather than as O.R.
procedures as finalized for FY 2018. As
a result, we have recalculated the FY
2018 MS–DRG relative weights after
applying the changes in the Version 35
MS–DRG groupings to the FY 2016
MedPAR data used for the final rule.
The FY 2018 MS–DRG relative
weights are used to calculate the MS–
DRG reclassification and recalibration
budget neutrality factor when
comparing total payments using FY
2017 MS–DRG relative weights to total
payments using the FY 2018 MS–DRG
relative weights. Additionally, the FY
2018 MS–DRG relative weights are used
when determining total payments for
purposes of all other budget neutrality
factors and the final outlier threshold,
which are discussed in this section II.C.
of this correcting document.
As discussed in section II.E. of this
correcting document, we made several
technical errors with regard to the
calculation of Factor 3 of the
uncompensated care payment
methodology. Factor 3 is used to
determine the total amount of the
uncompensated care payment a hospital
is eligible to receive for a fiscal year.
This amount is then used to calculate
the amount of the interim
uncompensated care payments a
hospital receives per discharge. Per
discharge uncompensated care
payments are included when
determining total payments for purposes
of all of the budget neutrality factors
and the final outlier threshold.
As a result, the revisions made to
address these technical errors regarding
the calculation of Factor 3 directly
affected the calculation of total
payments and required the recalculation
of all the budget neutrality factors and
the final outlier threshold.
Because of the errors in the wage data
for the six hospitals (CCNs 240010,
420033, 420037, 420038, 420078, and
420102), as discussed in section II.A. of
this correcting document, we
recalculated the FY 2018 national
average hourly wages unadjusted for
occupational mix and adjusted for
occupational mix which resulted in the
recalculation of the final FY 2018 IPPS
wage indexes and the geographic
adjustment factors (GAFs) (which are
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computed from the wage index). The
final FY 2018 IPPS wage data are used
in the calculation of the wage index
budget neutrality adjustment when
comparing total payments using the
final FY 2017 IPPS wage index data to
total payments using the final FY 2018
IPPS wage index data. Additionally, the
final FY 2018 IPPS wage index data are
used when determining total payments
for purposes of the rest of the budget
neutrality factors (except for the MS–
DRG reclassification and recalibration
budget neutrality factor) and the final
outlier threshold. In addition, the final
FY 2018 IPPS wage index data are used
to calculate the FY 2018 LTCH PPS
wage index values, certain budget
neutrality factors, and the LTCH PPS
standard Federal payment rate in the FY
2018 IPPS/LTCH PPS final rule.
Due to the correction of the
combination of errors listed previously
(recalculation of the MS–DRG relative
weights, revisions to Factor 3 of the
uncompensated care methodology and
correction to the final FY 2018 IPPS
wage index data), we recalculated all
IPPS budget neutrality adjustment
factors, the fixed-loss cost threshold, the
final wage indexes (and GAFs), and the
national operating standardized
amounts and capital Federal rate.
Therefore, we made conforming changes
to the following:
• On page 38522 and 38532, the MS–
DRG reclassification and recalibration
budget neutrality factor.
• On page 38522, the wage index
budget neutrality adjustment.
• On page 38522, the reclassification
hospital budget neutrality adjustment.
• On page 38523, the rural and
imputed floor budget neutrality
adjustment.
• On page 38527, the calculation of
the outlier fixed-loss cost threshold, the
national outlier adjustment factors, total
operating Federal payments, total
operating outlier payments, and
percentage of capital outlier payments.
• On page 38529, the table titled
‘‘Changes From FY 2017 Standardized
Amounts to the FY 2018 Standardized
Amounts’’.
On pages 38532 and 38534 through
38535, in our discussion of the
determination of the Federal hospital
inpatient capital related prospective
payment rate update, due to the
recalculation of the MS–DRG relative
weights and GAFs we have made
conforming corrections to the increase
in the capital Federal rate, the capital
outlier payment adjustment (budget
neutrality) factor, the GAF/DRG budget
neutrality adjustment factors, the capital
Federal rate, and the outlier threshold
(as discussed previously), along with
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certain statistical figures (for example,
percent change) in the accompanying
discussions.
Also, as a result of these errors, on
page 38535, we have made conforming
corrections in the tables showing the
comparison of factors and adjustments
for the FY 2017 capital Federal rate and
FY 2018 capital Federal rate and the
proposed FY 2018 capital Federal rate
and final FY 2018 capital Federal rate.
On pages 38537 and 38539, we are
correcting the area wage level budget
neutrality factor and making a
conforming change to the FY 2018
LTCH PPS standard Federal payment
rate due to corrections to the wage data
discussed previously.
On page 38544, we are making
conforming corrections to the fixed-loss
amount for FY 2018 LTCH PPS standard
Federal payment rate discharges and the
high-cost outlier (HCO) threshold
determined in absence of the required
changes under the 21st Century Cures
Act due to corrections in the MS–LTC–
DRG data discussed previously.
On page 38545, we are making
conforming corrections to the fixed-loss
amount for site neutral discharges due
to corrections in the IPPS rates and
factors discussed previously.
On pages 38546 and 38547, we are
making conforming corrections to the
figures used in the example of
computing the adjusted LTCH PPS
Federal prospective payment for FY
2018.
On page 38548, we have made
conforming corrections to the following:
• National adjusted operating
standardized amounts and capital
standard Federal payment rate (which
also include the rates payable to
hospitals located in Puerto Rico) in
Tables 1A, 1B, 1C, and 1D as a result of
the conforming corrections to certain
budget neutrality factors and the outlier
threshold (as described previously).
• LTCH PPS standard Federal
payment rate in Table 1E as a result of
the correction to area wage level budget
neutrality factor (as discussed
previously).
Also, on page 38548, in Table 1E, we
are correcting a technical error in our
terminology by replacing ‘‘Standard
Federal Rate’’ with ‘Standard Federal
Payment Rate’’.
factors as a result of the technical errors
that lead to conforming changes in our
calculation of the operating and capital
IPPS budget neutrality factors, outlier
threshold, final wage indexes, operating
standardized amounts, and capital
Federal rate (as described in sections
II.A. and II.C. of this correcting
document).
In particular, we made changes to the
following tables.
• On pages 38552 through 38554, the
table titled ‘‘Table I.—Impact Analysis
of Changes to the IPPS for Operating
Costs for FY 2018’’.
• On pages 38557 through 38558, the
table titled ‘‘FY 2018 IPPS Estimated
Payments Due To Rural and Imputed
Floor With National Budget Neutrality’’.
• On pages 38559 and 38560, the
table titled ‘‘Table II—Impact Analysis
of Changes for FY 2018 Acute Care
Hospital Operating Prospective Payment
System [Payments per Discharge]’’.
• On pages 38572 through 38574, the
table titled ‘‘Table III—Comparison of
Total Payments Per Case [FY 2017
Payments Compared to FY 2018
Payments]’’.
On pages 38561 through 38564, we
are correcting the discussion of the
‘‘Effects of the Changes to Medicare
DSH and Uncompensated Care
Payments for FY 2018’’ for purposes of
the Regulatory Impact Analysis in
Appendix A of the FY 2018 IPPS/LTCH
PPS final rule in light of the corrections
discussed in sections II.D. and II.E. of
this correcting document.
On pages 38576 and 38578 through
38579, we made conforming corrections
to the area wage level budget neutrality
factor and the LTCH PPS standard
Federal payment rate as described in
section II.C. of this correcting document.
On page 38579, we are making
conforming corrections to ‘‘Table IV.—
Impact of Payment Rate and Policy
Changes to LTCH PPS Payments for
Standard Payment Rate Cases for FY
2018.’’ We are also correcting technical
errors in the terminology used in the
title and column headings of Table IV
by ensuring the use of ‘‘Standard
Federal Payment Rate’’.
On page 38585, we made conforming
corrections to the estimated increase in
capital payments in FY 2018 compared
to FY 2017.
D. Summary of Errors in the Appendices
On pages 38552 through 38560 and
38572 through 38574 in our regulatory
impact analyses, we made conforming
corrections to the factors, values, and
tables and accompanying discussion of
the changes in operating and capital
IPPS payments for FY 2018 and the
effects of certain budget neutrality
E. Summary of Errors in and Corrections
to Files and Tables Posted on the CMS
Web Site
We are correcting the errors in the
following IPPS tables that are listed on
pages 38547 and 38548 of the FY 2018
IPPS/LTCH PPS final rule and are
available on the Internet on the CMS
Web site at https://www.cms.gov/
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Medicare/Medicare-Fee-for-ServicePayment/AcuteInpatientPPS/FY2018IPPS-Final-Rule-Home-Page.html. The
tables that are available on the Internet
have been updated to reflect the
revisions discussed in this correcting
document.
Table 2—Case-Mix Index and Wage
Index Table- FY 2018. The wage data
errors related to the six hospitals
required the recalculation of the FY
2018 national average hourly wages
unadjusted for occupational mix and
adjusted for occupational mix which
resulted in recalculating the FY 2018
wage indexes. Also, the recalculation of
the MS–DRG relative weights, the
revisions to Factor 3 of the
uncompensated care payment
methodology and recalculation of the
FY 2018 wage index necessitated the
recalculation of the rural and imputed
floor budget neutrality factor (as
discussed in section II.C. of this
correcting document). Therefore, we are
correcting the values in the column
titled ‘‘FY 2018 Wage Index’’ for all
hospitals. Additionally, for the six
hospitals for which we inadvertently
used the incorrect wage data (as
discussed in section II.A. of this
correcting document), we are correcting
the average hourly wages in the
columns titled ‘‘Average Hourly Wage
FY 2018’’ and ‘‘3-Year Average Hourly
Wage (2016, 2017, 2018)’’.
Table 3.—Wage Index Table by
CBSA–FY 2018. The wage data errors
related to the six hospitals required the
recalculation of the FY 2018 national
average hourly wage adjusted for
occupational mix which resulted in
recalculating the FY 2018 wage indexes.
Also, the recalculation of the MS–DRG
relative weights, the revisions to Factor
3 of the uncompensated care payment
methodology, and recalculation of the
FY 2018 wage index necessitated the
recalculation of the rural and imputed
floor budget neutrality factor (as
discussed in section II.C. of this
correcting document). Therefore, we are
making corresponding changes to the
wage indexes and GAFs of all CBSAs
listed in Table 3. Specifically, we are
correcting the values and flags in the
columns titled ‘‘Wage Index’’,
‘‘Reclassified Wage Index’’, ‘‘GAF’’,
‘‘Reclassified GAF’’, ‘‘Pre-Frontier and/
or Pre-Rural or Imputed Floor Wage
Index’’ and ‘‘Eligible for Rural or
Imputed Floor Wage Index’’.
Additionally, for the two CBSAs (24860
and 40340) where the six hospitals for
which we inadvertently used the
incorrect wage data are located (as
discussed in section II.A. of this
correcting document), we are correcting
the average hourly wages in the
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columns titled ‘‘FY 2018 Average
Hourly Wage’’ and ‘‘3-Year Average
Hourly Wage (2016, 2017, 2018)’’. As we
described previously, we inadvertently
used the incorrect wage data for the
following hospitals: CCNs 240010,
420033, 420037, 420038, 420078 and
420102.
Table 5.—List of Medicare Severity
Diagnosis-Related Groups (MS–DRGs),
Relative Weighting Factors, and
Geometric and Arithmetic Mean Length
of Stay—FY 2018. We are correcting this
table to reflect the recalculation of the
FY 2018 MS–DRG relative weights and
associated statistics as a result of the
corrections to the logic for the ICD–10
MS–DRG Grouper Version 35 Software
discussed in section II.A. of this
correcting document. Specifically, we
are correcting the values in the columns
titled ‘‘Weights’’, ‘‘Geometric mean
LOS’’, and ‘‘Arithmetic mean LOS’’.
Table 6P.—ICD–10–CM and ICD–10–
PCS Code Designations, MCE and MS–
DRG Changes—FY 2018. As discussed
in section II.A of this correcting
document, we are correcting the list of
the ICD–10–PCS procedure codes in
Table 6P.4b to reflect the three ICD–10–
PCS procedure codes relating to the
percutaneous insertion of intraluminal
or monitoring devices that are finalized
as non-O.R. procedures for FY 2018.
Table 7B.—Medicare Prospective
Payment System Selected Percentile
Lengths of Stay: FY 2016 MedPAR
Update—March 2017 GROUPER V35.0
MS–DRGs. We are correcting this table
to reflect the recalculation of the FY
2018 MS–DRG relative weights and
associated statistics as a result of the
corrections to the logic for the ICD–10
MS–DRG Grouper Version 35 Software
discussed in section II.A. of this
correcting document.
Table 10—New Technology Add-On
Payment Thresholds for Applications
for FY 2019. We are correcting the
thresholds in this table as a result of the
corrections to the operating
standardized amounts discussed in
section II.C. of this correcting document.
Table 18.—Final FY 2018 Medicare
DSH Uncompensated Care Payment
Factor 3. We are correcting this table to
reflect revisions to the Factor 3
calculations for purposes of determining
uncompensated care payments for the
FY 2018 IPPS/LTCH PPS final rule for
the following reasons:
• To apply our finalized policy of
double weighting the 2013 Factor 3
instead of developing a 2014 Factor 3
using uncompensated care cost data
from Worksheet S–10 for several allinclusive rate providers.
• To reflect mergers where data for
the merged hospital were not combined
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with the data for the surviving hospital
for purposes of calculating Factor 3 for
the FY 2018 IPPS/LTCH PPS Final Rule.
• To correct the Factor 3 that was
computed for a hospital whose FY 2014
cost report in the March 2017 extract of
Healthcare Cost Report Information
System (HCRIS) inadvertently omitted
amended uncompensated care cost data
reported on an amended Worksheet S–
10 that had been received timely per CR
9648 issued on July, 15, 2016, and that
was inadvertently omitted from the
hospital’s 2014 cost report when it was
uploaded into HCRIS.
• To correct the Factor 3 that was
computed for a hospital that only had
Factor 3 values for two cost reporting
periods, but whose Factor 3 was
inadvertently calculated by dividing by
three cost reporting periods when
averaging the Factor 3 values.
• To correct the misapplication of our
new hospital policy, where hospitals
with a CMS Certification Number (CCN)
established after October 1, 2013, but
before October 1, 2014, were
inadvertently considered subject to that
policy when calculating Factor 3. As
stated in the FY 2018 IPPS/LTCH PPS
final rule (82 FR 38212), only those
hospitals with a CCN established after
October 1, 2014, are considered new
and subject to the new hospital policy
when calculating Factor 3 for FY 2018.
We are revising Factor 3 for all
hospitals to correct these errors. We are
also revising the amount of the total
uncompensated care payment
calculated for each DSH-eligible
hospital. The total uncompensated care
payment that a hospital receives is used
to calculate the amount of the interim
uncompensated care payments the
hospital receives per discharge. Per
discharge uncompensated care
payments are included when
determining total payments for purposes
of all of the budget neutrality factors
and the final outlier threshold. As a
result, these corrections to the
uncompensated care payments
impacted the calculation of all the
budget neutrality factors as well as the
outlier fixed-loss cost threshold for
outlier payments. These corrections will
be reflected in Table 18 and the
Medicare DSH Supplemental Data File.
In section II.D. of this correcting
document, we have made corresponding
revisions to the discussion of the
‘‘Effects of the Changes to Medicare
DSH and Uncompensated Care
Payments for FY 2018’’ for purposes of
the Regulatory Impact Analysis in
Appendix A of the FY 2018 IPPS/LTCH
PPS final rule to reflect the corrections
discussed previously.
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We are also correcting the errors in
the following LTCH PPS tables that are
listed on page 38548 of the FY 2018
IPPS/LTCH PPS final rule and are
available on the Internet on the CMS
Web site at https://www.cms.gov/
Medicare/Medicare-Fee-forServicePayment/LongTermCareHospital
PPS/ under the list item for
regulation number CMS–1677–F. The
tables that are available on the Internet
have been updated to reflect the
revisions discussed in this correcting
document.
Table 11.—MS–LTC–DRGs, Relative
Weights, Geometric Average Length of
Stay, and Short-Stay Outlier (SSO)
Threshold for LTCH PPS Discharges
Occurring from October 1, 2017 through
September 30, 2018. We are correcting
this table to reflect the recalculation of
the FY 2018 MS–LTC–DRG relative
weights and associated statistics as a
result of the corrections to the logic for
the Version 35 Grouper Software
discussed in section II.A. of this
correcting document.
Table 12A.—LTCH PPS Wage Index
for Urban Areas for Discharges
Occurring from October 1, 2017 through
September 30, 2018. We are correcting
this table to reflect the revisions to the
LTCH PPS wage index values discussed
in section II.C. of this correcting
document.
Table 12B.—LTCH PPS Wage Index
for Rural Areas for Discharges Occurring
from October 1, 2017 through
September 30, 2018. We are correcting
this table to reflect the revisions to the
LTCH PPS wage index values discussed
in section II.C. of this correcting
document.
We also note that we have made
conforming changes to the ICD–10 MS–
DRG Definitions Manual Version 35 for
consistency with the ICD–10 MS–DRG
Grouper and Medicare Code Editor
(MCE) Version 35 Software. First, the
ICD–10–CM diagnosis code P05.18
(Newborn small for gestational age,
2000–2499 grams) was displayed in the
ICD–10 MS–DRG Definitions Manual
Version 35 as grouping to both MS–
DRGs 793 (Full Term Neonate with
Major Problems) and 795 (Normal
Newborn). The correct MS–DRG
assignment for diagnosis code P05.18 is
only MS–DRG 795; therefore,
corrections were made to the ICD–10
MS–DRG Definitions Manual Version 35
to reflect the correct MS–DRG
assignment. Second, the following 9
diagnosis codes were not included in
the major problem list in the MS–DRG
Definitions Manual: K56.600 (Partial
intestinal obstruction, unspecified as to
cause); K56.601 (Complete intestinal
obstruction, unspecified as to cause);
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Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
K56.609 (Unspecified intestinal
obstruction, unspecified as to partial
versus complete obstruction); K56.690
(Other partial intestinal obstruction);
K56.691(Other complete intestinal
obstruction); K56.699 (Other intestinal
obstruction unspecified as to partial
versus complete obstruction); K91.30
(Postprocedural intestinal obstruction,
unspecified as to partial versus
complete); K91.31 (Postprocedural
partial intestinal obstruction); and
K91.32 (Postprocedural complete
intestinal obstruction). We made
corrections to add these 9 diagnosis
codes to the major problems list for MS–
DRG 793 under Major Diagnostic
Category (MDC) 15 (Newborns & Other
Neonates with Conditions Originating in
Perinatal Period) in the ICD–10 MS–
DRG Definitions Manual Version 35.
sradovich on DSK3GMQ082PROD with RULES
III. Waiver of Proposed Rulemaking
and Delay in Effective Date
We ordinarily publish a notice of
proposed rulemaking in the Federal
Register to provide a period for public
comment before the provisions of a rule
take effect in accordance with section
553(b) of the Administrative Procedure
Act (APA) (5 U.S.C. 553(b)). However,
we can waive this notice and comment
procedure if the Secretary finds, for
good cause, that the notice and
comment process is impracticable,
unnecessary, or contrary to the public
interest, and incorporates a statement of
the finding and the reasons therefore in
the notice.
Section 553(d) of the APA ordinarily
requires a 30-day delay in the effective
date of final rules after the date of their
publication in the Federal Register.
This 30-day delay in effective date can
be waived, however, if an agency finds
for good cause that the delay is
impracticable, unnecessary, or contrary
to the public interest, and the agency
incorporates a statement of the findings
and its reasons in the rule issued.
We believe that this correcting
document does not constitute a rule that
would be subject to the APA notice and
comment or delayed effective date
requirements. This correcting document
corrects technical and typographic
errors in the preamble, regulations text,
addendum, payment rates, tables, and
appendices included or referenced in
the FY 2018 IPPS/LTCH PPS final rule
but does not make substantive changes
to the policies or payment
methodologies that were adopted in the
final rule. As a result, this correcting
document is intended to ensure that the
information in the FY 2018 IPPS/LTCH
PPS final rule accurately reflects the
policies adopted in that final rule.
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In addition, even if this were a rule to
which the notice and comment
procedures and delayed effective date
requirements applied, we find that there
is good cause to waive such
requirements. Undertaking further
notice and comment procedures to
incorporate the corrections in this
document into the final rule or delaying
the effective date would be contrary to
the public interest because it is in the
public’s interest for providers to receive
appropriate payments in as timely a
manner as possible, and to ensure that
the FY 2018 IPPS/LTCH PPS final rule
accurately reflects our policies.
Furthermore, such procedures would be
unnecessary, as we are not altering our
payment methodologies or policies, but
rather, we are simply implementing
correctly the policies that we previously
proposed, received comment on, and
subsequently finalized. This correcting
document is intended solely to ensure
that the FY 2018 IPPS/LTCH PPS final
rule accurately reflects these payment
methodologies and policies. Therefore,
we believe we have good cause to waive
the notice and comment and effective
date requirements.
Correction of Errors
In FR Doc. 2017–16434 of August 14,
2017 (82 FR 37990), we are making the
following corrections:
A. Corrections of Errors in the Preamble
1. On page 37990, first column, line
8 (Part headings), the figures ‘‘486, 488,
489, and 495’’ are corrected to read
‘‘486, 489, and 495’’.
2. On page 38067—
a. Second column, last partial
paragraph, line 1, the figure ‘‘28’’ is
corrected to read ‘‘18’’.
b. Third column—
(1) First partial paragraph—
(a) Line 7, the phrase ‘‘28 ICD–10–
PCS’’ is corrected to read ‘‘28 (18
discrete) ICD–10–PCS’’.
(b) Line 15, the phrase ‘‘O.R.
procedures. We invite public’’ is
corrected to read ‘‘O.R. procedures. (We
note that Table 6P.4b. associated with
the proposed rule listed 28 rather than
18 ICD–10–PCS codes because we
inadvertently included 10 duplicate
codes. However only 18 discrete ICD–
10–PCS codes were listed in that table.)
We invite public’’.
(2) First full paragraph—
(a) Line 3, the figure ‘‘28’’ is corrected
to read ‘‘18’’.
(b) Line 9, the figure ‘‘28’’ is corrected
to read ‘‘18’’.
3. On page 38068, top half of the page
(between the untitled tables) first
column—
a. First paragraph, line 5, the figure
‘‘28’’ is corrected to read ‘‘18’’.
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b. Second paragraph, line 4, the figure
‘‘13’’ is corrected to read ‘‘3’’.
4. On page 38119, third column, first
partial paragraph, lines 25 and 26, the
phrase ‘‘XW033A3 and XW043A3.’’ is
corrected to read ‘‘XW033A3 or
XW043A3.’’
5. On page 38132—
a. Second column, first paragraph, last
line, the figure ‘‘$42.1027’’ is corrected
to read ‘‘$42.0795’’.
b. Third column, first partial
paragraph, line 4, the figure $42.1027’’
is corrected to read ‘‘$42.0795’’.
6. On page 38137, third column—
a. First full paragraph, last line, the
figure $42.0564’’ is corrected to read
‘‘$42.0332’’.
b. Last full paragraph, last line, the
figure $42.0564’’ is corrected to read
‘‘$42.0332’’.
7. On page 38144, first column, first
partial paragraph, lines 8 through 10,
the phrase ‘‘2520 Lord Baltimore Drive,
Suite L, Baltimore, MD 21244– 2670.’’ is
corrected to read ‘‘1508 Woodlawn
Drive, Suite 100, Baltimore, MD
21207.’’.
8. On page 38195—
a. Top of the page, third column, first
full paragraph, line 19, the figure
‘‘$15.533’’ is corrected to read
‘‘$15.553’’.
b. Bottom of the page in the table
titled ‘‘FACTORS APPLIED FOR FY
2015 THROUGH FY 2018 TO
ESTIMATE MEDICARE DSH
EXPENDITURES USING 2014
BASELINE’’ last row (FY 2018), last
column (Estimated DSH payment), the
entry ‘‘15.533’’ is corrected to read
‘‘15.553’’.
9. On page 38225—
a. First column, last bulleted
paragraph, lines 3 through 5, the phrase
‘‘(AMI–Version 8.0, HF–Version 8.0,
Pneumonia–Version 8.0, COPD–Version
4.0, and Stroke–Version 4.0: 2016’’ is
corrected to read ‘‘(AMI–Version 9.0,
HF–Version 9.0, Pneumonia–Version
9.0, COPD–Version 5.0, and Stroke–
Version 5.0: 2016’’.
b. Second column; first bulleted
paragraph, lines 2 through 4, the phrase
‘‘(THA and/or TKA–Version 4.0, CABG–
Version 2.0: 2016’’ is corrected to read
‘‘(THA and/or TKA–Version 5.0, CABG–
Version 3.0: 2016)’’.
10. On page 38249, second column,
last paragraph, lines 23 and 24, the
parenthetical phrase ‘‘(for example, the
MORT–30–PN measure)’’ is corrected to
read ‘‘(for example, PN Payment
measure)’’.
11. On page 38257, third column,
footnote paragraph (footnote 69), last
line, the date ‘‘Mar 1997’’ is corrected to
read ‘‘Mar 1977’’.
12. On page 38258, first column, third
paragraph—
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a. Lines 8 and 9, the reference ‘‘(78 FR
50074;’’ is corrected to read ‘‘(79 FR
50074;’’.
b. Line 9, the reference ‘‘80 FR
49588).’’ is corrected to read ‘‘80 FR
49558).’’.
13. On page 38259, first column, first
partial paragraph, line 14, the date
‘‘June 0’’ is corrected to read ‘‘June 30’’.
14. On page 38309, third column, first
full paragraph, line 29 the figure
‘‘1.28590’’ is corrected to read
‘‘1.28593’’.
15. On page 38310, first column—
a. First full paragraph, line 29, the
figure ‘‘0.9907845’’ is corrected to read
‘‘0.9907437’’.
b. Second full paragraph—
(1) Line 5, the figure ‘‘1.28590’’ is
corrected to read ‘‘1.28593’’.
(2) Line 6, the figure ‘‘0.9907845’’ is
corrected to read ‘‘0.9907437’’.
16. On page 38426—
a. First column, second full
paragraph, line 21, the phrase ‘‘an
Application of Percent’’ is corrected to
read ‘‘Application of Percent’’.
b. Third column, third full paragraph,
line 10, the phrase ‘‘criteria; however
should’’ is corrected to read ‘‘criteria.
However, the measure should’’.
17. On page 38434, in the first
column, second paragraph—
a. Line 29, the phrase ‘‘Stage 3 or 4
ulcers.’’ is corrected to read ‘‘Stage 3 or
4 pressure ulcers.’’.
b. Line 31, the phrase ‘‘Stage 1 and 2
ulcers decreased’’ is corrected to read
‘‘Stage 1 and 2 pressure ulcers
decreased’’.
c. Line 32, the phrase ’’ of Stage 3 and
4 ulcers’’ is corrected to read ‘‘of Stage
3 and 4 pressure ulcers’’.
18. On page 38440, third column, last
paragraph—
a. Lines 10 and 11, the phrase ‘‘That
nearly one third’’ is corrected to read
‘‘The fact that nearly one third’’.
b. Lines 16 and 17, the phrase ‘‘LTCH,
and also indicates’’ is corrected to read
‘‘LTCH. It also indicates’’.
19. On page 38458, third column,
second full paragraph—
a. Lines 21 through 23, the phrase
(measure name) ‘‘Functional Outcome
Measure: Change in Mobility Among
Patients Requiring Ventilator Support
(NQF #2632).’’ is corrected to read
‘‘Functional Outcome Measure: Change
in Mobility Among Long-Term Care
Hospital (LTCH) Patients Requiring
Ventilator Support (NQF #2632).’’.
b. Lines 31 through 34, the phrase
(measure name) ‘‘Functional Outcome
Measure: Change in Mobility Among
Patients Requiring Ventilator Support
(NQF #2632)’’ is corrected to read
‘‘Functional Outcome Measure: Change
in Mobility Among Long-Term Care
Hospital (LTCH) Patients Requiring
Ventilator Support (NQF #2632).’’
20. On page 38509, second column,
eighth full paragraph (List of subjects 42
CFR 488), the paragraph is corrected by
removing the paragraph.
B. Correction of Errors in the
Regulations Text
1. On page 38516, in the first column,
remove the part heading for part 488
and remove amendatory instructions 34
and 35 in their entirety.
§ 495.4
[Corrected]
2. On page 38516, in the second
column, after amendatory instruction
39a, add amendatory instruction a2 to
read—
‘‘a2. In the definition of ‘‘Certified
electronic health record technology
(CEHRT)’’:
i. In paragraph (1)(iii), removing the
phrase ‘‘for 2018 subsequent years’’ and
adding in its place the phrase ‘‘for 2019
and subsequent years’’; and
ii. In the introductory text of
paragraph (2), removing the phrase ‘‘For
2018 and subsequent years,’’ and adding
in its place the phrase ‘‘For 2019 and
subsequent years,’’.’’
§ 495.24
[Corrected]
3. On page 38517, second column,
sixth full paragraph, amendatory
instruction 41d is corrected and
46143
amendatory instructions 41e and f are
correctly added to read as follows:
‘‘d. Revising the paragraph (d)
heading.
e. In paragraph (d)(6)(i)(B)(1)(iv) by
removing the phrase ‘‘For an EHR
reporting period in 2017 only, an EP’’
and adding in its place the phrase ‘‘For
an EHR reporting period in 2017 and
2018, an EP’’.
f. Revising paragraphs (d)(6)(i)(B)(2)(i)
and (ii), (d)(6)(ii)(B)(1)(iv), and
(d)(6)(ii)(B)(2)(i) and (ii).’’
C. Correction of Errors in the Addendum
1. On page 38522 —
a. Second column, first full
paragraph—
(1) Line 3, the figure ‘‘0.997432’’ is
corrected to read ‘‘0.997439’’.
(2) Line 8, the figure ‘‘0.997432’’ is
corrected to read ‘‘0.997439’’.
b. Third column—
(1) First full paragraph, line 9, the
figure ‘‘1.001148’’ is corrected to read
‘‘1.000882’’.
(2) Last paragraph, line 11 the figure
‘‘0.988008’’ is corrected to read
‘‘0.987985’’.
2. On page 38523, second column,
first partial paragraph, line 2, the figure
‘‘0.993348’’ is corrected to read
‘‘0.993324’’.
3. On page 38527, lower two-thirds of
the page (after the first untitled table),
third column—
a. First partial paragraph—
(1) Line 4, the figure ‘‘$26,601’’ is
corrected to read ‘‘$26,537’’.
(2) Line 5, the figure ‘‘85,942,484,975’’
is corrected to read ‘‘$90,203,348,168’’.
(3) Line 6, the figure ‘‘$4,618,707,285’’
is corrected to read ‘‘$4,600,554,656’’.
(4) Line 17, the figure ‘‘$26,601’’ is
corrected to read ‘‘$26,537’’.
b. First full paragraph, line 13, the
figure ‘‘5.16’’ is corrected to read ‘‘5.17’’.
c. Following the third full paragraph,
the untitled table is corrected to read as
follows:
Operating
standardized
amounts
sradovich on DSK3GMQ082PROD with RULES
National ....................................................................................................................................................................
4. On page 38529, top of the page, the
table titled ‘‘CHANGES FROM FY 2017
STANDARDIZED AMOUNTS TO THE
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FY 2018 STANDARDIZED AMOUNTS’’,
is corrected to read as follows:
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04OCR1
Capital
federal
rate
0.948998
0.948259
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CHANGES FROM FY 2017 STANDARDIZED AMOUNTS TO THE FY 2018 STANDARDIZED AMOUNTS
Hospital submitted quality
data and is a meaningful
EHR user
FY 2018 Base Rate after
removing:
1. FY 2017 Geographic Reclassification Budget Neutrality (0.988136).
2. FY 2017 Operating
Outlier Offset
(0.948998).
3. FY 2017 2-Midnight
Rule One-Time Prospective Increase
(1.006).
4. FY 2017 Labor Market Delineation
Wage Index Transition Budget Neutrality Factor
(0.999997).
Hospital submitted quality
data and is NOT a
meaningful EHR user
Hospital did NOT submit
quality data and is a
meaningful EHR user
Hospital did NOT submit
quality data and is NOT a
meaningful EHR user
If Wage Index is Greater
Than 1.0000:
If Wage Index is Greater
Than 1.0000:
If Wage Index is Greater
Than 1.0000:
If Wage Index is Greater
Than 1.0000:
Labor (68.3%):
$3,993.72.
Labor (68.3%):
$3,993.72.
Labor (68.3%):
$3,993.72.
Labor (68.3%):
$3,993.72.
Nonlabor (30.4%):
$1,853.60.
Nonlabor (30.4%):
$1,853.60.
Nonlabor (30.4%):
$1,853.60.
Nonlabor (30.4%):
$1,853.60.
If Wage Index is less
Than or Equal to
1.0000:
If Wage Index is less
Than or Equal to
1.0000:
If Wage Index is less
Than or Equal to
1.0000:
If Wage Index is less
Than or Equal to
1.0000:
Labor (62%): $3,625.34 ....
Nonlabor (38%): $2,221.98
sradovich on DSK3GMQ082PROD with RULES
FY 2018 Update Factor .....
FY 2018 MS–DRG Recalibration Budget Neutrality Factor.
FY 2018 Wage Index
Budget Neutrality Factor.
FY 2018 Reclassification
Budget Neutrality Factor.
FY 2018 Operating Outlier
Factor.
Adjustment for FY 2018
Required under Section
414 of Pub. L. 114–10
(MACRA) and Section
15005 of Pub. L. 114–
255.
National Standardized
Amount for FY 2018 if
Wage Index is Greater
Than 1.0000; Labor/NonLabor Share Percentage
(68.3/31.7).
National Standardized
Amount for FY 2018 if
Wage Index is less Than
or Equal to 1.0000;
Labor/Non-Labor Share
Percentage (62/38).
Labor (62%): $3,625.34 ....
Nonlabor (38%): $2,221.98
Labor (62%): $3,625.34 ....
Nonlabor (38%): $2,221.98
1.0135 ...............................
0.997439 ...........................
0.99325 .............................
0.997439 ...........................
1.00675 .............................
0.997439 ...........................
Labor (62%): $3,625.34.
Nonlabor (38%):
$2,221.98.
0.9865.
0.997439.
1.000882 ...........................
1.000882 ...........................
1.000882 ...........................
1.000882.
0.987985 ...........................
0.987985 ...........................
0.987985 ...........................
0.987985.
0.948998 ...........................
0.948998 ...........................
0.948998 ...........................
0.98998.
1.004588 ...........................
1.004588 ...........................
1.004588 ...........................
1.004588.
Labor: $3,806.04 ...............
Nonlabor: $1,766.49 .........
Labor: $3,729.99 ...............
Nonlabor: $1,731.20 .........
Labor: $3,780.69 ...............
Nonlabor: $1,754.73 .........
Labor: $3,704.65.
Nonlabor: $1,719.43.
Labor: $3,454.97 ...............
Nonlabor: $2,117.56 .........
Labor: $3,385.94 ...............
Nonlabor: $2,075.25 .........
Labor: $3,431.96 ...............
Nonlabor: $2,103.46 .........
Labor: $3,362.93.
Nonlabor: $2,061.15.
5. On page 38532, lower two-thirds of
the page (after the untitled table)—
a. First column, second full
paragraph, line 13, the figure
‘‘0.997432’’ is corrected to read
‘‘0.997439’’.
b. Third column, second full
paragraph, line 6, the figure ‘‘1.61’’ is
corrected to read ‘‘1.60’’.
6. On page 38534—
a. First column—
(1) First full paragraph—
(a) Line 8, the figure ‘‘5.16’’ is
corrected to read ‘‘5.17’’.
(b) Line 12, the figure ‘‘0.9484’’ is
corrected to read ‘‘0.9483’’.
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(2) Second full paragraph—
(a) Lines 5 and 6, the phrase ‘‘outlier
adjustment of 0.9484 is a 1.04 percent
change’’ is corrected to read ‘‘outlier
adjustment of 0.9483 is a 1.03 percent
change’’.
(b) Line 10, the figures ‘‘1.0104
(0.9484/0.9386)’’ are corrected to read
‘‘1.0103(0.9483/0.9386)’’.
(c) Line 12, the figure ‘‘1.04’’ is
corrected to read ‘‘1.03’’.
(3) Fourth full paragraph—
(a) Line 13, the figure ‘‘0.9994’’ is
corrected to read ‘‘0.9995’’.
(b) Line 16, the figure ‘‘0.9844’’ is
corrected to read ‘‘0.99845’’.
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b. Second column—
(1). First partial paragraph, line 8, the
figure ‘‘0.9837’’ is corrected to read
‘‘0.9838’’.
(2). Third full paragraph—
(a) Line 1, the figure ‘‘0.9986’’ is
corrected to read ‘‘0.9987’’.
(b) Line 3, the figure ‘‘0.9994’’ is
corrected to read ‘‘0.9995’’.
c. Third column—
(1). First full paragraph—
(a) Line 4, the figure ‘‘1.61’’ is
corrected to read ‘‘1.60’’.
(b) Line 15, the figure ‘‘$453.97’’ is
corrected to read ‘‘$453.95’’.
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Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
(c) Second bulleted paragraph, last
line, the figure ‘‘0.9986’’ is corrected to
read ‘‘0.9987’’.
(d) Third bulleted paragraph, last line,
the figure ‘‘0.9484’’ is corrected to read
‘‘0.9483’’.
(e) Last paragraph—
(1) Line 15, the figure ‘‘0.14’’ is
corrected to read ‘‘0.13’’.
(2) Line 18, the figure ‘‘1.04’’ is
corrected to read ‘‘1.03’’.
7. On page 38535—
a. Top of page—
46145
(1) Second column, first partial
paragraph, last line, the figure ‘‘1.61’’ is
corrected to read ‘‘1.60’’.
(2) The table titled ‘‘COMPARISON
OF FACTORS AND ADJUSTMENTS: FY
2017 CAPITAL FEDERAL RATE AND
FY 2018 CAPITAL FEDERAL RATE’’ is
corrected to read as follows:
COMPARISON OF FACTORS AND ADJUSTMENTS: FY 2017 CAPITAL FEDERAL RATE AND FY 2018 CAPITAL FEDERAL RATE
FY 2017
Update Factor 1 ................................................................................................
GAF/DRG Adjustment Factor 1 ........................................................................
Outlier Adjustment Factor 2 ..............................................................................
Removal of One-Time 2-Midnight Policy Adjustment Factor ..........................
Capital Federal Rate ........................................................................................
1.0090
0.9990
0.9386
1.0060
$446.79
FY 2018
1.0130
0.9987
0.9483
1/1.006
$453.95
Change
1.0130
0.9987
1.0103
0.9940
1.0160
Percent
change 3
1.30
¥0.13
1.03
¥0.60
1.60
1 The update factor and the GAF/DRG budget neutrality adjustment factors are built permanently into the capital Federal rates. Thus, for example, the incremental change from FY 2017 to FY 2018 resulting from the application of the 0.9987 GAF/DRG budget neutrality adjustment factor
for FY 2018 is a net change of 0.9987 (or -0.13 percent).
2 The outlier reduction factor is not built permanently into the capital Federal rate; that is, the factor is not applied cumulatively in determining
the capital Federal rate. Thus, for example, the net change resulting from the application of the FY 2018 outlier adjustment factor is 0.9483/
0.9386 or 1.0103 (or 1.03 percent).
3 Percent change may not sum due to rounding.
b. Middle of page, the table titled
‘‘COMPARISON OF FACTORS AND
ADJUSTMENTS: PROPOSED FY 2018
CAPITAL FEDERAL RATE AND FINAL
FY 2018 CAPITAL FEDERAL RATE’’ is
corrected to read as follows:
COMPARISON OF FACTORS AND ADJUSTMENTS: PROPOSED FY 2018 CAPITAL FEDERAL RATE AND FINAL FY 2018
CAPITAL FEDERAL RATE
Proposed
FY 2018
sradovich on DSK3GMQ082PROD with RULES
Update Factor 1 ................................................................................................
GAF/DRG Adjustment Factor 1 ........................................................................
Outlier Adjustment Factor 2 ..............................................................................
Removal of One-Time 2-Midnight Policy Adjustment Factor ..........................
Capital Federal Rate ........................................................................................
c. Lower third of the page, first
column, second full paragraph, last line,
the figure, ‘‘$26,601’’ is corrected to
read ‘‘$26,537’’.
8. On page 38537—
a. First column last paragraph—
(1) Line 22, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
(2) Line 35, the figure ‘‘$41,430.56’’ is
corrected to read ‘‘$41,415.11’’.
(3) Line 36, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
b. Second column, first partial
paragraph—
(1) Line 5, the figure ‘‘40,610.16’’ is
corrected to read ‘‘$40,595.02’’.
(2) Line 6, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
9. On page 38539, second column,
fourth full paragraph—
a. Line 6, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
1.0120
0.9992
0.9434
1/1.006
$451.37
b. Line 11, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
10. On page 38544—
a. First column—
(1) First partial paragraph—
(a) Line 6, the figure ‘‘27,382’’ is
corrected to read ‘‘27,381’’.
(b) Last line, the figure ‘‘27,382’’ is
corrected to read ‘‘27,381’’.
(2) First full paragraph—
(a) Line 4, the figure ‘‘27,382’’ is
corrected to read ‘‘27,381’’.
(b) Line 27, the figure ‘‘27,240’’ is
corrected to read ‘‘27,239’’.
(3) Second column, first partial
paragraph, line 25, the figure ‘‘27,382’’
is corrected to read ‘‘27,381’’.
10. On page 38545—
a. Second column, second full
paragraph—
(1) Line 14, the figure, ‘‘$26,601’’ is
corrected to read ‘‘$26,537’’.
Final
FY 2018
1.0130
0.9987
0.9483
1/1.006
$453.95
Change
1.0010
0.9985
1.0052
0.0000
1.0057
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1.10
¥0.05
0.52
0.00
0.57
(2) Last line, the figure, ‘‘$26,601’’ is
corrected to read ‘‘$26,537’’.
b. Third column, second full
paragraph, line 3, the figure, ‘‘$26,601’’
is corrected to read ‘‘$26,537’’.
11. On page 38546, third column—
a. Second full paragraph, line 27, the
figure ‘‘$41,430.56’’ is corrected to read
‘‘$41,415.11’’.
b. Last paragraph, line 7, the figure
‘‘1.0547’’ is corrected to read ‘‘1.0553’’.
12. On page 38547, top of the page—
a. Second column, partial paragraph—
(1) Line 2, the figure ‘‘$41,430.56’’ is
corrected to read ‘‘$41,415.11’’.
(2) Line 3, the figure ‘‘1.0547’’ is
corrected to read ‘‘1.0553’’.
b. Third column, partial paragraph,
line 5, the figure ‘‘$41,449.71’’ is
corrected to read ‘‘$41,450.13’’.
c. Untitled table, the table is corrected
to read as follows:
LTCH PPS Standard Federal Payment Rate ......................................................................................................................................
Labor-Related Share ...........................................................................................................................................................................
Labor-Related Portion of the LTCH PPS Standard Federal Payment Rate .......................................................................................
Wage Index (CBSA 16974) .................................................................................................................................................................
VerDate Sep<11>2014
Percent
change
E:\FR\FM\04OCR1.SGM
04OCR1
$41,415.11
× 0.662
= $27,416.80
× 1.0553
46146
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
Wage-Adjusted Labor Share of LTCH PPS Standard Federal Payment Rate ...................................................................................
Nonlabor-Related Portion of the LTCH PPS Standard Federal Payment Rate ($41,415.11 x 0.338) ...............................................
Adjusted LTCH PPS Standard Federal Payment Amount ..................................................................................................................
MS–LTC–DRG 189 Relative Weight ...................................................................................................................................................
Total Adjusted LTCH PPS Standard Federal Payment Rate ..............................................................................................................
13. On page 38548—
a. Middle of the page,
(1) The table titled ‘‘TABLE 1A.—
NATIONAL ADJUSTED OPERATING
STANDARDIZED AMOUNTS, LABOR/
NONLABOR [(68.3 PERCENT LABOR
SHARE/31.7 PERCENT NONLABOR
= $28,932.95
+ $13,998.31
= $42,931.26
× 0.9655
= $41,450.13
SHARE IF WAGE INDEX IS GREATER
THAN 1)—FY 2018’’] is corrected to
read as follows:
TABLE 1A—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR
[(68.3 percent labor share/31.7 percent nonlabor share if wage index is greater than 1)—FY 2018]
Hospital submitted quality data
and is a meaningful EHR user
(update = 1.35 percent)
Hospital submitted quality data
and is not a meaningful EHR user
(update = ¥0.675 percent)
Hospital did NOT submit quality
data and is a meaningful EHR
user
(update = 0.675 percent)
Hospital did NOT submit quality
data and is NOT a meaningful
EHR user
(update = ¥1.35 percent)
Labor
Nonlabor
Labor
Nonlabor
Labor
Nonlabor
Labor
Nonlabor
$3,806.04
$1,766.49
$3,729.99
$1,731.20
$3,780.69
$1,754.73
$3,704.65
$1,719.43
(2) The table titled ‘‘TABLE 1B.—
NATIONAL ADJUSTED OPERATING
STANDARDIZED AMOUNTS, LABOR/
NONLABOR [(62 PERCENT LABOR
SHARE/38 PERCENT NONLABOR
SHARE IF WAGE INDEX IS LESS
THAN OR EQUAL TO 1)—FY 2018]’’ is
corrected to read as follows:
TABLE 1B—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR
[(62 percent labor share/38 percent nonlabor share if wage index is less than or equal to 1)—FY 2018]
Hospital submitted quality data
and is a meaningful EHR user
(update = 1.35 percent)
Hospital submitted quality data
and is not a meaningful EHR user
(update = ¥0.675 percent)
Hospital did NOT submit quality
data and is a meaningful EHR
user
(update = 0.675 percent)
Hospital did NOT submit quality
data and is NOT a meaningful
EHR user
(update = ¥1.35 percent)
Labor
Nonlabor
Labor
Nonlabor
Labor
Nonlabor
Labor
Nonlabor
$3,454.97
$2,117.56
$3,385.94
$2,075.25
$3,431.96
$2,103.46
$3,362.93
$2,061.15
(3) The table titled ‘‘TABLE 1C.—
ADJUSTED OPERATING
STANDARDIZED AMOUNTS FOR
HOSPITALS IN PUERTO RICO,
LABOR/NONLABOR [(NATIONAL: 62
PERCENT LABOR SHARE/38 PERCENT
NONLABOR SHARE BECAUSE WAGE
INDEX IS LESS THAN OR EQUAL TO
1);—FY 2018]’’ is corrected to read as
follows:
TABLE 1C—ADJUSTED OPERATING STANDARDIZED AMOUNTS FOR HOSPITALS IN PUERTO RICO, LABOR/NONLABOR
[(National: 62 percent labor share/38 percent nonlabor share because wage index is less than or equal to 1);—FY 2018]
Rates if wage index is greater than 1
Rates if wage index is less
than or equal to 1
Standardized amount
Labor
National 1 ........................................
sradovich on DSK3GMQ082PROD with RULES
1 For
Nonlabor
Labor
Nonlabor
Not Applicable ................................
Not Applicable ................................
$3,454.97
$2,117.56
FY 2018, there are no CBSAs in Puerto Rico with a national wage index greater than 1.
b. Bottom of the page—
(1) The table titled ‘‘TABLE 1D.—
CAPITAL STANDARD FEDERAL
PAYMENT RATE [FY 2018]’’ is
corrected to read as follows:
TABLE 1D—CAPITAL STANDARD
FEDERAL PAYMENT RATE
PAYMENT RATE [FY 2018]’’ is
corrected to read as follows:
[FY 2018]
Rate
National .................................
$453.95
(2) The table titled ‘‘TABLE 1E.—
LTCH PPS STANDARD FEDERAL
VerDate Sep<11>2014
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Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
46147
TABLE 1E—LTCH PPS STANDARD FEDERAL PAYMENT RATE
[FY 2018]
Full update
(1 percent)
Standard Federal Payment Rate .............................................................................................................................
D. Corrections of Errors in the
Appendices
‘‘TABLE I.—IMPACT ANALYSIS OF
CHANGES TO THE IPPS FOR
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$41,415.11
$40,595.02
OPERATING COSTS FOR FY 2018’’ are
corrected to read as follows:
BILLING CODE 4120–01–P
1. On pages 38552 through 38554, the
table and table notes for the table titled
VerDate Sep<11>2014
Reduced
update *
(¥1.0
percent)
Frm 00025
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04OCR1
sradovich on DSK3GMQ082PROD with RULES
46148
VerDate Sep<11>2014
TABLE I.-IMPACT ANALYSIS OF CHANGES TO THE IPPS FOR OPERATING COSTS FOR FY 2018
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1.2
2,492
1,340
1,152
800
1.2
1.2
1.2
0.9
648
763
441
426
214
Number
of
HosP,itals
Hospital Rate
Update and
Adjustments
E:\FR\FM\04OCR1.SGM
04OCR1
0
FY 2018 MGCRB
Reclassifications
(4)5
0
0
0
0
0.1
0
0
0
0
1.1
1.2
1.2
1.2
1.2
0.4
0.2
0.1
0
-0.2
318
282
117
44
39
0.9
0.9
0.8
0.9
0.9
114
315
404
385
147
160
378
162
375
52
20
53
125
(1) 2
All Hospitals
By Geographic
Location:
Urban hospitals
Large urban areas
Other urban areas
Rural hospitals
Bed Size (Urban):
0-99 beds
100-199 beds
200-299 beds
300-499 beds
500 or more beds
Bed Size (Rural):
0-49 beds
50-99 beds
100-149 beds
150-199 beds
200 or more beds
Urban by Region:
New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
Puerto Rico
Rural by Region:
New England
Middle Atlantic
South Atlantic
FY 2018
Wage Data
with
Application
of Wage
Budget
Neutrality
(3)4
Rural and
Imputed
Floor with
Application
of National
Budget
Neutrality
Application
of the
Frontier
Wage Index
and
Out-Migration
Adjustment
(5)6
(6)7
Expiration
ofMDH
Status
(7)8
All FY 2018
Chan~es
(8)
0
0.1
-0.1
1.3
-0.1
-0.5
0.3
1.4
0
-0.1
0.2
-0.2
0.1
0
0.2
0.2
0
0
-0.1
-0.9
1.4
1.4
1.4
0.2
0.1
0.1
0
0.0
-0.1
-0.6
0
0.1
-0.1
-0.2
0.1
0.3
0.1
0
-0.1
0.2
0.2
0.1
0.1
0.1
-0.7
-0.1
0
0
0
0.8
1.5
1.5
1.4
1.4
0.3
0.2
0.1
0.1
0
0
0
-0.1
0
0.2
0.4
0.6
1.1
2.2
2.9
-0.2
-0.1
-0.2
-0.2
-0.2
0.3
0.4
0.1
0.1
0
-1.6
-2.2
-0.1
0
0
-0.5
-1.4
0.8
1.3
1.6
1.2
1.2
1.2
1.2
1.2
1.1
1.2
1.1
1.1
1.2
0
0
0
0.1
0
-0.1
0
0
-0.1
-0.5
-0.5
-0.1
0.1
0.1
-0.2
0.4
0.5
-0.2
-0.4
1.4
1.2
0.6
-0.4
-0.3
-0.3
-0.8
-0.5
0
-0.2
-1.0
1.4
-0.3
-0.2
-0.4
-0.3
-0.3
-0.3
0.1
0.9
0.2
0.1
0.1
0
0
0
0.7
0
0.3
0.1
0.1
-0.2
0
-0.1
0
0
-0.1
-0.1
0
0
0
1.4
1.1
1.6
1.6
1.3
1.6
1.7
0.6
1.5
1.1
1.0
0.8
1.0
0.1
0.2
0.2
1.1
0
-0.1
2.1
0.8
1.8
-0.3
-0.2
-0.2
0.2
0.2
0.2
-2.2
-1.7
-0.8
0.6
-0.9
-0.1
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
ER04OC17.000
3,292
FY 2018
Weights and
DRG
Changes
with
Application
of
Recalibration
Budget
Neutrality
(2)3
0
sradovich on DSK3GMQ082PROD with RULES
VerDate Sep<11>2014
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(2)3
(3) 4
Rural and
Imputed
Floor with
Application
of National
Budget
Neutrality
Application
of the
Frontier
Wage Index
and
Out-Migration
Adjustment
(5)6
(6)7
PO 00000
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Sfmt 4725
E:\FR\FM\04OCR1.SGM
04OCR1
-0.1
-0.3
0.0
-0.2
-0.1
-0.1
0.1
0.1
0.3
0.2
0.3
0
-0.3
-0.5
-0.1
1.6
0
-0.1
0.2
-0.1
0.1
0
0.2
0.2
0
0
0
-0.7
1.4
1.4
1.4
0.8
0
0
0.2
-0.1
0.2
-0.1
0.1
0.2
-0.3
0
1.2
1.4
-0.2
-0.1
-0.1
-0.1
0
0
1.4
1.2
1.2
1.1
0
0
0.3
0
0
0
-0.2
-0.3
-0.2
-0.1
0
0.1
0.2
0.1
0.2
-0.3
0
-0.1
1.0
1.4
1.6
257
293
34
244
0.6
1.0
1.2
1.1
0
0
0.2
0.5
0
0.1
0
0
-0.1
2.0
1.7
0.5
0
-0.1
-0.2
-0.3
0
0.2
0.1
0.7
0
-0.3
-0.1
-4.8
0.5
1.6
0.4
-3.9
863
92
1,050
368
1.2
1.2
1.2
1.2
-0.1
0
0.2
0.1
-0.1
-0.1
0
0.1
-0.3
-0.2
-0.2
-0.4
-0.1
-0.2
0.3
-0.1
0.1
0.1
0.1
0.2
0
0
0
0
1.4
1.0
1.5
1.5
263
316
1.2
0.7
0.1
-0.2
0.1
-0.2
2.5
-0.1
-0.1
0
0.3
0
-0.4
0
1.8
0.4
115
154
97
154
58
24
2,373
1,354
1,019
919
0.1
0.3
-0.1
0.3
0.2
0
-0.3
0.1
0
0.2
-0.1
0
FY 2018 MGCRB
Reclassifications
(4)5
1.2
2.4
0.2
1.5
0.2
1.2
1.2
1.2
1.2
1.0
0
0
0
0.1
0
0
0
0.1
2,204
839
1.1
1.2
0.1
0.1
249
1.2
551
1,543
370
1
All FY 2018
Chan~es
(8)'
-0.9
1.1
0.6
0.6
0.9
0.4
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
FY 2018
Wage Data
with
Application
of Wage
Budget
Neutrality
Expiration
ofMDH
Status
(7)8
-1.7
-0.3
-0.3
-0.7
0
0
Hospital Rate
Update and
Adjustments
(1) 2
0.9
1.1
0.6
0.9
0.6
0.6
Number
of
Hospitals
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
By Payment
Classification:
Urban hospitals
Large urban areas
Other urban areas
Rural areas
Teaching Status:
Nonteaching
Fewer than 100
residents
100 or more residents
Urban DSH:
Non-DSH
100 or more beds
Less than 100 beds
Rural DSH:
SCH
RRC
100 or more beds
Less than 100 beds
Urban teaching and
DSH:
Both teaching and DSH
Teaching and no DSH
No teaching and DSH
No teaching and no
DSH
Special Hospital
Types:
RRC
SCH
FY 2018
Weights and
DRG
Changes
with
Application
of
Recalibration
Budget
Neutrality
46149
ER04OC17.001
sradovich on DSK3GMQ082PROD with RULES
46150
VerDate Sep<11>2014
Jkt 244001
1
Hospital Rate
Update and
Adjustments
(1) 2
0.7
FY 2018
Wage Data
with
Application
of Wage
Budget
Neutrality
(3) 4
0.1
FY 2018 MGCRB
Reclassifications
(4)5
0.3
Rural and
Imputed
Floor with
Application
of National
Budget
Neutrality
(5)6
0
Application
of the
Frontier
Wage Index
and
Out-Migration
Adjustment
(6)7
0
Expiration
ofMDH
Status
(7)8
All FY 2018
Chan~es
PO 00000
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E:\FR\FM\04OCR1.SGM
04OCR1
(8)!
SCH and RRC
131
0
0.9
Type of Ownership:
Voluntary
0.1
-0.1
1.3
1,914
1.2
0
0
0
0
Proprietary
863
1.2
0.2
0.2
0
0
0.1
-0.1
1.6
Government
513
1.1
-0.1
-0.2
0.1
0.1
-0.1
1.3
0
Medicare Utilization
as a Percent of
Inpatient Days:
0-25
554
1.2
0
0
-0.3
0.1
0.1
0
1.4
0.1
-0.1
1.4
25-50
2,149
1.2
0.0
0
0
0
50-65
485
1.1
0.1
0.1
0.6
0.2
0.2
-0.6
0.8
Over65
103
1.0
0.6
0.4
-0.9
-0.2
0.3
-4.0
-1.9
FY 2018
Reclassifications by
the Medicare
Geographic
Classification Review
Board:
-0.2
1.5
1.1
0.1
0.1
2.2
-0.1
All Reclassified
0
858
Hospitals
Non-Reclassified
2,434
1.2
0
0
-0.9
0
0.2
-0.1
1.3
Hospitals
0.1
0.1
2.2
-0.1
-0.1
1.6
Urban Hospitals
1.2
0
590
Reclassified
Urban Nonreclassified
1,858
1.2
0
0.0
-0.9
0
0.1
0
1.4
Hospitals
0.1
Rural Hospitals
268
0.9
2.3
-0.2
-0.5
0.7
0
0
Reclassified
-0.1
0.4
-1.4
-0.5
485
0.9
0.2
0
-0.3
Rural Nonreclassified
Hospitals
All Section 401
166
1.1
0.1
1.9
0.3
-0.5
1.4
0
0
Reclassified Hospitals:
1.1
0.4
0.3
3.3
-0.3
0
-1.2
0.5
Other Reclassified
47
Hospitals (Section
1886(d)(8)(B))
Because data necessary to classify some hospitals by category were missing, the total number of hospitals in each category may not equal the national total. Discharge data are from FY 2016,
and hospital cost report data are from reporting periods beginning in FY 2014 and FY 2015.
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
ER04OC17.002
Number
of
Hospitals
FY 2018
Weights and
DRG
Changes
with
Application
of
Recalibration
Budget
Neutrality
(2)3
-0.1
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Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
BILLING CODE 4120–01–C
VerDate Sep<11>2014
This column displays the payment impact of the hospital rate update and other adjustments, including the 1.35 percent adjustment to the national standardized amount and the hospital-specific
rate (the estimated 2.7 percent market basket update reduced by 0.6 percentage point for the multifactor productivity adjustment and the 0.75 percentage point reduction under the Affordable Care
Act), the 0.4588 percent adjustment to the national standardized amount required under section 15005 of the 21st Century Cures Act and a factor of (1/1.006) to remove the 1.006 temporary onetime adjustment made in FY 2017 to address the effects of the 0.2 percent reduction in effect for FYs 2014 through 2016 related to the 2-midnight policy.
3 This column displays the payment impact of the changes to the Version 35 GROUPER, the changes to the relative weights and the recalibration ofthe MS-DRG weights based on FY 2016
MedPAR data in accordance with section 1886(d)(4)(C)(iii) of the Act. This column displays the application of the recalibration budget neutrality factor of 0.997439 in accordance with section
1886(d)(4)(C)(iii) of the Act.
4 This column displays the payment impact of the update to wage index data using FY 2014 and 2013 cost report data and the OMB labor market area delineations based on 2010 Decennial
Census data. This column displays the payment impact of the application of the wage budget neutrality factor, which is calculated separately from the recalibration budget neutrality factor, and is
calculated in accordance with section 1886(d)(3)(E)(i) of the Act. The wage budget neutrality factor is .1.000882.
5 Shown here are the effects of geographic reclassifications by the Medicare Geographic Classification Review Board (MGCRB). The effects demonstrate the FY 2018 payment impact of going
from no reclassifications to the reclassifications scheduled to be in effect for FY 2018. Reclassification for prior years has no bearing on the payment impacts shown here. This column reflects the
~eographic budget neutrality factor of 0.987985.
This column displays the effects of the rural floor and imputed floor. The Affordable Care Act requires the rural floor budget neutrality adjustment to be 100 percent national level adjustment. The
rural floor budget neutrality factor (which includes the imputed floor) applied to the wage index is 0.993324.
7 This column shows the combined impact of the policy required under section 10324 of the Affordable Care Act that hospitals located in frontier States have a wage index no less than 1.0 and of
section 1886(d)(13) of the Act, as added by section 505 of Pub. L. 108-173, which provides for an increase in a hospital's wage index if a threshold percentage of residents of the county where the
hospital is located commute to work at hospitals in counties with higher wage indexes. These are not budget neutral policies.
8 Th is column displays the impact of the expiration of MDH status for FY 2018, a non-budget neutral payment provision.
9 This column shows the estimated change in payments from FY 2017 to FY 2018.
2
46151
ER04OC17.003
46152
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
2. On page 38555,
a. Second column, second full
paragraph—
(1) Line 6, the figure ‘‘0.997432’’ is
corrected to read ‘‘0.997439’’.
(2) Line 14, the figure ‘‘0.2’’ is
corrected to read ‘‘0.1’’.
b. Third column, first full paragraph,
line 26, the figure ‘‘1.001148’’ is
corrected to read ‘‘1.000882’’.
3. On page 38556, lower half of the
page—
a. First column, third full paragraph,
line 6, the figure ‘‘0.988008’’ is
corrected to read ‘‘0.987985’’.
b. Third column—
(1) First full paragraph, line 8, the
figure ‘‘0.993348’’ is corrected to read
‘‘0.993324’’.
(2) Last paragraph, line 5, the figure
‘‘0.993348’’ is corrected to read
‘‘0.993324’’.
4. On page 38557, top of the page, first
column, first partial paragraph, line 20,
the figure ‘‘$44 million’’ is corrected to
read ‘‘$43 million’’.
5. On pages 38557 and 38558, the
table titled ‘‘FY 2018 IPPS ESTIMATED
PAYMENTS DUE TO RURAL AND
IMPUTED FLOOR WITH NATIONAL
BUDGET NEUTRALITY’’ is corrected to
read as follows:
FY 2018 IPPS ESTIMATED PAYMENTS DUE TO RURAL AND IMPUTED FLOOR WITH NATIONAL BUDGET NEUTRALITY
Number of
hospitals
(1)
sradovich on DSK3GMQ082PROD with RULES
State
Number of
hospitals that
will receive the
rural or
imputed floor
Percent
change in
payments due
to application
of rural floor
and imputed
floor with
budget
neutrality
(2)
(3)
Alabama ...........................................................................................................
Alaska ..............................................................................................................
Arizona .............................................................................................................
Arkansas ..........................................................................................................
California ..........................................................................................................
Colorado ..........................................................................................................
Connecticut ......................................................................................................
Delaware ..........................................................................................................
Washington, DC ...............................................................................................
Florida ..............................................................................................................
Georgia ............................................................................................................
Hawaii ..............................................................................................................
Idaho ................................................................................................................
Illinois ...............................................................................................................
Indiana .............................................................................................................
Iowa .................................................................................................................
Kansas .............................................................................................................
Kentucky ..........................................................................................................
Louisiana ..........................................................................................................
Maine ...............................................................................................................
Massachusetts .................................................................................................
Michigan ...........................................................................................................
Minnesota ........................................................................................................
Mississippi ........................................................................................................
Missouri ............................................................................................................
Montana ...........................................................................................................
Nebraska ..........................................................................................................
Nevada .............................................................................................................
New Hampshire ...............................................................................................
New Jersey ......................................................................................................
New Mexico .....................................................................................................
New York .........................................................................................................
North Carolina ..................................................................................................
North Dakota ....................................................................................................
Ohio .................................................................................................................
Oklahoma .........................................................................................................
Oregon .............................................................................................................
Pennsylvania ....................................................................................................
Puerto Rico ......................................................................................................
Rhode Island ....................................................................................................
South Carolina .................................................................................................
South Dakota ...................................................................................................
Tennessee .......................................................................................................
Texas ...............................................................................................................
Utah .................................................................................................................
Vermont ...........................................................................................................
Virginia .............................................................................................................
Washington ......................................................................................................
West Virginia ....................................................................................................
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84
6
57
44
299
47
30
6
7
171
103
12
14
127
85
34
53
66
94
17
57
94
49
60
74
13
24
23
13
64
25
154
84
6
128
84
34
150
52
11
56
17
91
310
31
6
73
48
29
E:\FR\FM\04OCR1.SGM
3
4
38
1
177
4
7
6
0
17
0
0
0
3
0
0
0
0
2
0
36
0
0
0
0
4
0
0
9
17
0
11
0
0
6
4
5
3
10
10
0
0
3
4
1
0
1
3
3
04OCR1
(4)
¥0.3
1.4
0.4
¥0.3
1.2
0.4
0.1
1.8
¥0.4
¥0.2
¥0.3
¥0.3
¥0.2
¥0.4
¥0.3
¥0.3
¥0.3
¥0.3
¥0.3
¥0.4
1.3
¥0.3
¥0.3
¥0.3
¥0.2
0
¥0.3
¥0.4
3.7
¥0.1
¥0.2
¥0.3
¥0.3
¥0.2
¥0.3
¥0.2
¥0.3
¥0.4
0.2
5.0
¥0.3
¥0.2
¥0.3
¥0.3
¥0.3
¥0.2
¥0.3
¥0.2
¥0.1
Difference
(in $ millions)
¥5
3
7
¥4
134
5
2
8
¥2
¥16
¥9
¥1
¥1
¥17
¥8
¥3
¥3
¥5
¥5
¥2
43
¥14
¥6
¥4
¥6
0
¥2
¥3
20
¥4
¥1
¥23
¥10
¥1
¥12
¥3
¥3
¥17
0
19
¥5
¥1
¥8
¥22
¥2
0
¥7
¥5
¥1
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
46153
FY 2018 IPPS ESTIMATED PAYMENTS DUE TO RURAL AND IMPUTED FLOOR WITH NATIONAL BUDGET NEUTRALITY—
Continued
Number of
hospitals
(1)
State
Number of
hospitals that
will receive the
rural or
imputed floor
Percent
change in
payments due
to application
of rural floor
and imputed
floor with
budget
neutrality
(2)
(3)
Wisconsin .........................................................................................................
Wyoming ..........................................................................................................
6. On pages 38559 and 38560, the
table titled ‘‘TABLE II.—IMPACT
ANALYSIS OF CHANGES FOR FY 2018
66
10
ACUTE CARE HOSPITAL OPERATING
PROSPECTIVE PAYMENT SYSTEM
Difference
(in $ millions)
(4)
¥0.2
¥0.1
8
0
¥3
0
(PAYMENTS PER DISCHARGE)’’ is
corrected to read as follows:
TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2018 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT
SYSTEM
[Payments per discharge]
Estimated
average
FY 2017
payment per
discharge
Estimated
average
FY 2018
payment per
discharge
FY 2018
changes
(1)
sradovich on DSK3GMQ082PROD with RULES
Number of
hospitals
(2)
(3)
(4)
All Hospitals .....................................................................................................
By Geographic Location:
Urban hospitals .........................................................................................
Large urban areas ....................................................................................
Other urban areas ....................................................................................
Rural hospitals ..........................................................................................
Bed Size (Urban):
0–99 beds .................................................................................................
100–199 beds ...........................................................................................
200–299 beds ...........................................................................................
300–499 beds ...........................................................................................
500 or more beds .....................................................................................
Bed Size (Rural):
0–49 beds .................................................................................................
50–99 beds ...............................................................................................
100–149 beds ...........................................................................................
150–199 beds ...........................................................................................
200 or more beds .....................................................................................
Urban by Region:
New England ............................................................................................
Middle Atlantic ..........................................................................................
South Atlantic ...........................................................................................
East North Central ....................................................................................
East South Central ...................................................................................
West North Central ...................................................................................
West South Central ..................................................................................
Mountain ...................................................................................................
Pacific .......................................................................................................
Puerto Rico ...............................................................................................
Rural by Region:
New England ............................................................................................
Middle Atlantic ..........................................................................................
South Atlantic ...........................................................................................
East North Central ....................................................................................
East South Central ...................................................................................
West North Central ...................................................................................
West South Central ..................................................................................
Mountain ...................................................................................................
Pacific .......................................................................................................
By Payment Classification:
Urban hospitals .........................................................................................
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3,292
$11,867
$12,024
1.3
2,492
1,340
1,152
800
12,207
12,881
11,477
8,911
12,379
13,061
11,642
8,930
1.4
1.4
1.4
0.2
648
763
441
426
214
9,730
10,248
11,079
12,366
15,011
9,813
10,404
11,245
12,538
15,224
0.8
1.5
1.5
1.4
1.4
318
282
117
44
39
7,523
8,487
8,896
9,292
10,514
7,486
8,372
8,966
9,410
10,679
¥0.5
¥1.4
0.8
1.3
1.6
114
315
404
385
147
160
378
162
375
52
13,125
13,819
10,783
11,537
10,245
11,915
10,948
12,824
15,634
8,851
13,303
13,967
10,952
11,727
10,375
12,107
11,134
12,898
15,867
8,947
1.4
1.1
1.6
1.6
1.3
1.6
1.7
0.6
1.5
1.1
20
53
125
115
154
97
154
58
24
12,091
8,891
8,274
9,224
7,900
9,736
7,539
10,620
12,466
12,166
8,812
8,269
9,144
7,987
9,794
7,587
10,718
12,517
0.6
¥0.9
¥0.1
¥0.9
1.1
0.6
0.6
0.9
0.4
2,373
12,148
12,320
1.4
E:\FR\FM\04OCR1.SGM
04OCR1
46154
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2018 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT
SYSTEM—Continued
[Payments per discharge]
Number of
hospitals
Estimated
average
FY 2017
payment per
discharge
Estimated
average
FY 2018
payment per
discharge
FY 2018
changes
(1)
(2)
(3)
(4)
sradovich on DSK3GMQ082PROD with RULES
Large urban areas ....................................................................................
Other urban areas ....................................................................................
Rural areas ...............................................................................................
Teaching Status:
Nonteaching ..............................................................................................
Fewer than 100 residents .........................................................................
100 or more residents ..............................................................................
Urban DSH:
Non-DSH ..................................................................................................
100 or more beds .....................................................................................
Less than 100 beds ..................................................................................
Rural DSH:
SCH ..........................................................................................................
RRC ..........................................................................................................
100 or more beds .....................................................................................
Less than 100 beds ..................................................................................
Urban teaching and DSH:
Both teaching and DSH ............................................................................
Teaching and no DSH ..............................................................................
No teaching and DSH ..............................................................................
No teaching and no DSH .........................................................................
Special Hospital Types:
RRC ..........................................................................................................
SCH ..........................................................................................................
SCH and RRC ..........................................................................................
Type of Ownership:
Voluntary ...................................................................................................
Proprietary ................................................................................................
Government ..............................................................................................
Medicare Utilization as a Percent of Inpatient Days:
0–25 ..........................................................................................................
25–50 ........................................................................................................
50–65 ........................................................................................................
Over 65 .....................................................................................................
FY 2018 Reclassifications by the Medicare Geographic Classification Review Board:
All Reclassified Hospitals .........................................................................
Non-Reclassified Hospitals .......................................................................
Urban Hospitals Reclassified ....................................................................
Urban Nonreclassified Hospitals ..............................................................
Rural Hospitals Reclassified Full Year .....................................................
Rural Nonreclassified Hospitals Full Year ................................................
All Section 401 Reclassified Hospitals: ....................................................
Other Reclassified Hospitals (Section 1886(d)(8)(B)) ..............................
7. On pages 38561 through 38564 in
the section titled ‘‘Effects of the Changes
to Medicare DSH and Uncompensated
Care Payments for FY 2018’’ (which
begins with the phrase ‘‘As discussed in
section V.G of the preamble’’ and ends
with the phrase ‘‘hospitals are projected
to receive large increases’’) the section
is corrected to read as follows:
‘‘5. Effects of the Changes to Medicare
DSH and Uncompensated Care
Payments for FY 2018.
As discussed in section V.G. of the
preamble of this final rule, under
section 3133 of the Affordable Care Act,
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Jkt 244001
1,354
1,019
919
12,867
11,200
10,568
13,047
11,362
10,656
1.4
1.4
0.8
2,204
839
249
9,850
11,372
17,228
9,967
11,535
17,461
1.2
1.4
1.4
551
1,543
370
10,357
12,512
8,960
10,456
12,689
9,102
1.0
1.4
1.6
257
293
34
244
9,526
11,384
10,297
7,035
9,578
11,568
10,339
6,764
0.5
1.6
0.4
¥3.9
863
92
1,050
368
13,579
11,410
10,217
9,854
13,766
11,522
10,374
10,000
1.4
1.0
1.5
1.5
263
316
131
11,165
10,774
11,265
11,360
10,820
11,362
1.8
0.4
0.9
1,914
863
513
12,058
10,392
12,810
12,212
10,554
12,980
1.3
1.6
1.3
554
2,149
485
103
14,910
11,728
9,617
7,591
15,115
11,890
9,695
7,444
1.4
1.4
0.8
¥1.9
858
2,434
590
1,858
268
485
166
47
11,661
11,956
12,202
12,210
9,339
8,422
12,504
8,122
11,830
12,108
12,396
12,381
9,399
8,379
12,677
8,165
1.5
1.3
1.6
1.4
0.7
¥0.5
1.4
0.5
hospitals that are eligible to receive
Medicare DSH payments will receive 25
percent of the amount they previously
would have received under the statutory
formula for Medicare DSH payments
under section 1886(d)(5)(F) of the Act.
The remainder, equal to an estimate of
75 percent of what formerly would have
been paid as Medicare DSH payments
(Factor 1), reduced to reflect changes in
the percentage of uninsured individuals
and additional statutory adjustments
(Factor 2), is available to make
additional payments to each hospital
that qualifies for Medicare DSH
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Frm 00032
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payments and that has uncompensated
care. Each hospital eligible for Medicare
DSH payments will receive an
additional payment based on its
estimated share of the total amount of
uncompensated care for all hospitals
eligible for Medicare DSH payments.
The uncompensated care payment
methodology has redistributive effects
based on the proportion of a hospital’s
uncompensated care relative to the
uncompensated care for all hospitals
eligible for Medicare DSH payments
(Factor 3).
E:\FR\FM\04OCR1.SGM
04OCR1
sradovich on DSK3GMQ082PROD with RULES
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
For FY 2018, we are establishing a
Factor 2 of 58.01 percent determined
using the uninsured estimates produced
by CMS’ Office of the Actuary (OACT)
as part of the development of the
National Health Expenditure Accounts
(NHEA). Although we are continuing to
use low-income insured patient days as
a proxy for uncompensated care, for the
first time, we are using these data in
combination with data on
uncompensated care costs from
Worksheet S–10 in the calculation of
Factor 3. The uncompensated care
payment methodology has redistributive
effects based on the proportion of a
hospital’s uncompensated care relative
to the total uncompensated care for all
hospitals eligible for Medicare DSH
payments. The change to Medicare DSH
payments under section 3133 of the
Affordable Care Act is not budget
neutral.
In this final rule, we are establishing
the amount to be distributed as
uncompensated care payments to DSH
eligible hospitals, which for FY 2018 is
$6,766,695,163.56. This figure
represents 75 percent of the amount that
otherwise would have been paid for
Medicare DSH payment adjustments
adjusted by a Factor 2 of 58.01 percent.
For FY 2017, the amount available to be
distributed for uncompensated care was
$5,977,483,146.86, or 75 percent of the
amount that otherwise would have been
paid for Medicare DSH payment
adjustments adjusted by a Factor 2 of
55.36 percent. To calculate Factor 3 for
FY 2018, we used an average of data
computed using Medicaid days from
hospitals’ 2012 and 2013 cost reports
from the March 2017 update of the
HCRIS database, uncompensated care
costs from hospitals’ 2014 cost reports
from the same extract of HCRIS,
Medicaid days from 2012 cost report
data submitted to CMS by IHS hospitals,
and SSI days from the FY 2014 and FY
2015 SSI ratios. For each eligible
hospital, we calculated an individual
Factor 3 for cost reporting years FYs
2012, 2013, and 2014. We then added
the individual amounts and divided the
sum by the number of cost reporting
periods with data to calculate an
average Factor 3 for FY 2018. For
purposes of this final rule, as we
proposed, we used the most recent data
from the March 2017 update of the
HCRIS database for the Medicaid days
component of the Factor 3 calculation as
well as for the Worksheet S–10
uncompensated care cost component.
The FY 2018 policy of using data from
hospitals’ FY 2012, FY 2013, and FY
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17:39 Oct 03, 2017
Jkt 244001
2014 cost reporting years to determine
Factor 3 is based on our FY 2017 final
policy (81 FR 56943 through 56973),
which is in contrast to the methodology
used in FY 2016, when we used
Medicaid days from the more recent of
a hospital’s full year 2012 or 2011 cost
report from the March 2015 update of
the HCRIS database, Medicaid days
from 2012 cost report data submitted to
CMS by IHS hospitals, and SSI days
from the FY 2013 SSI ratios to calculate
Factor 3. In addition, as explained in
section V.G.4.c. of the preamble of this
final rule, we are making several
additional modifications to the Factor 3
methodology: (1) To annualize Medicaid
data and uncompensated care data if a
hospital’s cost report does not equal 12
months of data; (2) to apply a scaling
factor to the uncompensated care
payment amount calculated for each
DSH eligible hospital so that total
uncompensated care payments are
consistent with the estimated amount
available to make uncompensated care
payments for FY 2018; (3) to apply
statistical trims to the CCRs on
Worksheet S–10 that are considered
anomalies to ensure reasonable CCRs
are used to convert charges to costs for
purposes of determining
uncompensated care costs; (4) to
calculate Factor 3 for Puerto Rico
hospitals, all-inclusive rate providers,
and Indian Health Service and Tribal
hospitals by substituting data regarding
low-income insured days for FY 2013
for the Worksheet S–10 data on
uncompensated care costs from FY 2014
cost reports; and (5) to determine the
ratio of uncompensated care costs
relative to total operating costs on the
hospital’s 2014 cost report (as of March
2017), and in cases where the ratio of
uncompensated care costs relative to
total operating costs exceeds 50 percent,
to determine the ratio of uncompensated
care costs to total operating costs from
the hospital’s 2015 cost report (as of
March 2017) and apply that ratio to the
hospital’s total operating costs from its
2014 cost report to determine
uncompensated care costs for FY 2014.
We also are continuing the policies
that were finalized in the FY 2015 IPPS/
LTCH PPS final rule (79 FR 50020
through 50022) to address several
specific issues concerning the process
and data to be employed in determining
Factor 3 in the case of hospital mergers
for FY 2018 and subsequent years, as
well as continuing the policies finalized
in the FY 2017 IPPS/LTCH PPS final
rule concerning the methodology for
calculating each hospital’s relative share
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46155
of uncompensated care, such as
combining data from multiple cost
reports beginning in the same fiscal year
and calculating Factor 3 based on an
average of the three individual Factor 3s
for FYs 2012, 2013, and 2014,
determined by adding the Factor 3
values for these years, and dividing by
the number of cost reporting periods
with data.
To estimate the impact of the
combined effect of changes in Factors 1
and 2, as well as the changes to the data
used in determining Factor 3, on the
calculation of Medicare DSH payments,
including both empirically justified
Medicare DSH payments and
uncompensated care payments, we
compared total DSH payments
estimated in the FY 2017 IPPS/LTCH
PPS final rule to total DSH payments
estimated in this FY 2018 IPPS/LTCH
PPS final rule. For FY 2017, for each
hospital, we calculated the sum of: (1)
25 percent of the estimated amount of
what would have been paid as Medicare
DSH in FY 2017 in the absence of
section 3133 of the Affordable Care Act;
and (2) 75 percent of the estimated
amount of what would have been paid
as Medicare DSH payments in the
absence of section 3133 of the
Affordable Care Act, adjusted by a
Factor 2 of 55.36 percent and multiplied
by a Factor 3 calculated as described in
the FY 2017 IPPS/LTCH PPS final rule.
For FY 2018, we calculated the sum of:
(1) 25 percent of the estimated amount
of what would be paid as Medicare DSH
payments in FY 2018 absent section
3133 of the Affordable Care Act; and (2)
75 percent of the estimated amount of
what would be paid as Medicare DSH
payments absent section 3133 of the
Affordable Care Act, adjusted by a
Factor 2 of 58.01 percent and multiplied
by a Factor 3 calculated using the
methodology described previously.
Our analysis included 2,438 hospitals
that are projected to be eligible for DSH
in FY 2018. It did not include hospitals
that had terminated their participation
in the Medicare program as of July 1,
2017, Maryland hospitals, and SCHs
that are expected to be paid based on
their hospital specific rates. In addition,
data from merged or acquired hospitals
were combined under the surviving
hospital’s CCN, and the non-surviving
CCN was excluded from the analysis.
The estimated impact of the changes to
Factors 1, 2, and 3 across all hospitals
projected to be eligible for DSH
payments in FY 2018, by hospital
characteristic, is presented in the
following table.
E:\FR\FM\04OCR1.SGM
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46156
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
MODELED DISPROPORTIONATE SHARE HOSPITAL PAYMENTS FOR ESTIMATED FY 2018 DSHS BY HOSPITAL TYPE: MODEL
DSH $ (IN MILLIONS) FROM FY 2017 TO FY 2018
Number of
estimated
DSHs
(FY 2018)
sradovich on DSK3GMQ082PROD with RULES
FY 2018 final
rule estimated
DSH
$ (in millions)
Dollar
difference: FY
2017–FY 2018
(in millions)
Percent
change **
(1)
Total .....................................................................................
By Geographic Location:
Urban Hospitals ............................................................
Large Urban Areas .......................................................
Other Urban Areas .......................................................
Rural Hospitals .............................................................
Bed Size (Urban):
0 to 99 Beds .................................................................
100 to 249 Beds ...........................................................
250+ Beds ....................................................................
Bed Size (Rural):
0 to 99 Beds .................................................................
100 to 249 Beds ...........................................................
250+ Beds ....................................................................
Urban by Region:
New England ................................................................
Middle Atlantic ..............................................................
South Atlantic ................................................................
East North Central ........................................................
East South Central .......................................................
West North Central .......................................................
West South Central ......................................................
Mountain .......................................................................
Pacific ...........................................................................
Puerto Rico ...................................................................
Rural by Region:
New England ................................................................
Middle Atlantic ..............................................................
South Atlantic ................................................................
East North Central ........................................................
East South Central .......................................................
West North Central .......................................................
West South Central ......................................................
Mountain .......................................................................
Pacific ...........................................................................
By Payment Classification:
Urban Hospitals ............................................................
Large Urban Areas .......................................................
Other Urban Areas .......................................................
Rural Hospitals .............................................................
Teaching Status:
Nonteaching ..................................................................
Fewer than 100 residents .............................................
100 or more residents ..................................................
Type of Ownership:
Voluntary .......................................................................
Proprietary ....................................................................
Government ..................................................................
Medicare Utilization Percent:
Missing or Unknown .....................................................
0 to 25 ...........................................................................
25 to 50 .........................................................................
50 to 65 .........................................................................
Greater than 65 ............................................................
FY 2017 final
rule estimated
DSH
$ (in millions)
(2)
(3)
(4)
(5)
2,438
$9,553
$10,630
$1,077
11.3
1,938
1,043
895
500
9,113
5,717
3,396
439
10,110
6,377
3,733
520
996
660
336
80
10.9
11.5
9.9
18.3
342
843
753
185
2,154
6,775
241
2,386
7,482
57
233
707
30.7
10.8
10.4
371
115
14
190
193
56
238
221
60
48
28
5
25.2
14.6
8.2
91
241
316
322
131
103
257
121
316
40
387
1,570
1,724
1,252
566
439
1,165
448
1,448
116
415
1,643
2,037
1,372
618
488
1,448
497
1,463
129
29
73
314
120
53
48
283
49
15
13
7.4
4.7
18.2
9.6
9.3
11.0
24.3
11.0
1.0
10.9
12
25
86
68
136
30
111
27
5
16
33
92
44
141
19
72
15
7
21
32
115
58
150
23
95
20
6
5
¥1
23
13
9
4
23
5
¥1
32.0
¥3.9
25.2
29.9
6.2
22.1
32.1
32.2
¥11.4
1,928
1,043
885
510
9,106
5,717
3,389
447
10,101
6,377
3,724
529
994
660
334
82
10.9
11.5
9.9
18.5
1,526
669
243
2,955
3,213
3,384
3,276
3,501
3,853
321
288
468
10.9
9.0
13.8
1,434
552
452
5,971
1,650
1,932
6,533
1,662
2,434
563
12
502
9.4
0.7
30.0
15
425
1,642
310
46
1
2,972
6,218
352
11
15
3,365
6,829
408
13
14
393
611
57
2
2147.4
13.2
9.8
16.1
17.4
Source: Dobson | DaVanzo analysis of 2012–2014 Hospital Cost Reports.
* Dollar DSH calculated by [0.25 * estimated section 1886(d)(5)(F) payments] + [0.75 * estimated section 1886(d)(5)(F) payments * Factor 2 *
Factor 3]. When summed across all hospitals projected to receive DSH payments, DSH payments are estimated to be $9,553 million in FY 2017
and $10,630 million in FY 2018.
** Percentage change is determined as the difference between Medicare DSH payments modeled for the FY 2018 IPPS/LTCH PPS final rule
(column 3) and Medicare DSH payments modeled for the FY 2017 IPPS/LTCH PPS final rule (column 2) divided by Medicare DSH payments
modeled for the FY 2017 final rule (column 2) times 100 percent.
Changes in projected FY 2018 DSH
payments from DSH payments in FY
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2017 are primarily driven by (1) changes
to Factor 1, which increased from
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$10.797 billion to $11.665 billion; (2)
changes to Factor 2, which increased
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04OCR1
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sradovich on DSK3GMQ082PROD with RULES
from 55.36 percent to 58.01 percent; (3)
changes to the data used to determine
Factor 3; and (4) changes to the number
of DSH-eligible hospitals within a given
hospital type. The impact analysis
found that, across all projected DSH
eligible hospitals, FY 2018 DSH
payments are estimated at
approximately $10.630 billion, or an
increase of approximately 11.3 percent
from FY 2017 DSH payments
(approximately $9.553 billion). While
these changes result in a net increase in
the amount available to be distributed in
uncompensated care payments, DSH
payments to select hospital types are
expected to decrease. This
redistribution of DSH payments is
caused by changes in the data used to
determine Factor 3 and changes in the
number of DSH-eligible hospitals within
a given hospital type.
As seen in the above table, percent
changes in DSH payments of less than
11.3 percent indicate that hospitals
within the specified category are
projected to experience a smaller
increase in DSH payments, on average,
compared to the universe of projected
FY 2018 DSH hospitals. Conversely,
percent changes in DSH payments that
are greater than 11.3 percent indicate a
hospital type is projected to have a
larger increase than the overall percent
change on average, a larger increase
than the overall percent change. The
variation in the distribution of DSH
payments by hospital characteristic is
largely dependent on the change in a
given hospital’s number of Medicaid
days and SSI days for purposes of the
low-income insured days proxy between
FY 2017 and FY 2018, as well as on its
uncompensated care costs as reported
on its FY 2014 Worksheet S–10.
Many rural hospitals, grouped by
geographic location, payment
classification, and bed size, are
projected to experience a larger increase
in DSH payments than their urban
counterparts. Overall, rural hospitals are
projected to receive an 18.3 percent
increase in DSH payments, and urban
hospitals are projected to receive a 10.9
percent increase. However, only smaller
and medium-sized rural hospitals are
projected to receive increases in DSH
payments that are, on average, higher
than the 11.3 percent change across all
hospitals that are projected to be eligible
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for DSH in FY 2018. Rural hospitals that
have 0–99 beds are projected to
experience a 25.2 percent payment
increase, those with 100–249 beds are
projected to receive a 14.6 percent
increase, and larger rural hospitals with
250+ beds are projected to experience
an 8.2 percent payment increase. This
trend is somewhat consistent with
urban hospitals, in which the smallest
urban hospitals (0– 99 beds) are
projected to receive an increase in DSH
payments of 30.7 percent. Medium sized
hospitals (100–250 beds) and larger
hospitals (250+ beds) are projected to
receive increases of 10.8 and 10.4
percent in DSH payments, respectively,
which are relatively consistent with the
overall average.
By region, projected DSH payment
increases for urban hospitals are smaller
than the overall percent change in the
New England, Middle Atlantic, East
North Central, East South Central, and
Pacific regions. Hospitals in the South
Atlantic and West South Central regions
are projected to receive increases in
DSH payments that are, on average,
larger than the 11.3 percent change
across all hospitals projected to be
eligible for DSH in FY 2018. Increases
in the West North Central, Mountain,
and Puerto Rico regions are generally
consistent with the overall average
percent increase of 11.3 percent.
Regionally, rural hospitals are projected
to receive a wider range of increases.
Rural hospitals in the Middle Atlantic
and Pacific regions are expected to
receive a decrease in DSH payments,
while those in the East South Central
region are projected to receive an
increase in DSH payments smaller than
the 11.3 overall percent change.
Increases are projected to be
substantially larger than the overall
average in many regions, including New
England, South Atlantic, East North
Central, West North Central, West South
Central, and Mountain.
Nonteaching hospitals and teaching
hospitals with fewer than 100 residents
are projected to receive smaller
increases than the overall percent
change, at 10.9 and 9.0 percent
respectively. Conversely, teaching
hospitals with 100 or more residents are
projected to receive, on average, larger
increases than the overall percent
change of 11.3 percent, with a projected
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46157
increase of 13.8 percent. Voluntary
hospitals are expected to receive a 9.4
percent increase, which is somewhat
smaller than the overall percent change,
while proprietary hospitals are expected
to receive almost no change in DSH
payments. Government hospitals are
projected to receive a larger than
average 30.0 percent increase. Hospitals
with 25 to 50 percent Medicare
utilization are projected to receive
increases in DSH payments slightly
below the overall average at 9.8 percent,
while all other hospitals are projected to
receive larger increases.’’
8. On page 38572 top of the page—
a. First column, fourth bulleted
paragraph—
(1) Line 4, the figure ‘‘0.9986’’ is
corrected to read ‘‘0.9987’’
(2) Line 5, the figure ‘‘0.9484’’ is
corrected to read ‘‘0.9483’’
b Second column, first full
paragraph—
(1) Line 8, the figure ‘‘0.9484’’ is
corrected to read ‘‘0.9483’’
(2) Line 9, the figure ‘‘1.04’’ is
corrected to read ‘‘1.03’’.
c. Third column—
(1) First partial paragraph—
(a) Line 1, the figure ‘‘2.9’’ is corrected
to read ‘‘3.0’’
(b) Line 4, the figure 2.0’’ is corrected
to read ‘‘1.9’’.
(2) First full paragraph –
(a) Line 4, the figure ‘‘3.7’’ is corrected
to read ‘‘3.8’’.
(b) Line 9, the figure ‘‘5.2’’ is
corrected to read ‘‘5.3’’.
(c) Line 12, the figure ‘‘1.9’’ is
corrected to read ‘‘2.0’’.
(3) Second full paragraph—
(a) Line 7, the figure ‘‘2.3’’ is corrected
to read ‘‘2.2’’.
(b) Lines 10 and 11, the phrase ‘‘3.2
percent.’’ is corrected to read ‘‘3.2
percent and 3.3 percent, respectively.’’.
(4) Last paragraph—
(a) Line 14, the figure ‘‘1.6’’ is
corrected to read ‘‘1.7’’.
(b) Line 27, the figure ‘‘6.6’’ is
corrected to read ‘‘6.5’’.
9. On pages 38572 through 38574, the
table titled ‘‘TABLE III.—COMPARISON
OF TOTAL PAYMENTS PER CASE [FY
2017 PAYMENTS COMPARED TO FY
2018 PAYMENTS]’’ is corrected to read
as follows:
BILLING CODE 4120–01–P
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TABLE 111.-COMP ARISON OF TOTAL PAYMENTS PER CASE [FY 2017
PAYMENTS COMPARED TO FY 2018 PAYMENTS]
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943
1,037
913
644
977
798
850
897
989
1,167
644
544
599
642
687
771
2.5
3.0
1.9
3.0
2.5
3.9
3.0
2.3
2.4
2.2
3.0
3.9
2.5
2.7
3.6
2.9
953
1,038
1,054
849
918
800
933
863
1,005
1,209
437
625
860
603
584
645
574
667
555
695
805
977
1,056
1,074
869
941
815
958
896
1,013
1,250
451
644
905
616
596
661
591
690
574
716
836
2.5
1.8
1.9
2.4
2.5
1.8
2.8
3.8
0.8
3.4
3.2
3.0
5.3
2.2
2.0
2.5
3.0
3.4
3.4
3.1
3.8
3,292
1,354
1,019
919
920
1,005
883
768
943
1,036
907
771
2.5
3.0
2.8
0.4
2,204
839
249
779
890
1,283
802
910
1,314
2.9
2.3
2.4
1,543
370
975
697
1,003
727
2.8
4.3
257
293
622
833
632
834
1.7
0.1
34
Sfmt 4725
920
1,007
896
625
953
768
825
877
965
1,142
625
523
584
625
663
749
2,492
114
315
404
385
147
160
378
162
375
52
800
20
53
125
115
154
97
154
58
24
Fmt 4700
Average
FY 2018
payments/
case
3,292
1,340
1,152
800
2,492
648
763
441
426
214
800
318
282
117
44
39
By Geographic Location:
All hospitals
Large urban areas (populations over 1 million)
Other urban areas (populations of 1 million of fewer)
Rural areas
Urban hospitals
0-99 beds
100-199 beds
200-299 beds
300-499 beds
500 or more beds
Rural hospitals
0-49 beds
50-99 beds
100-149 beds
150-199 beds
200 or more beds
By Region:
Urban by Region
New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
Puerto Rico
Rural by Region
New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
By Payment Classification:
All hospitals
Large urban areas (populations over 1 million)
Other urban areas (populations of 1 million of fewer)
Rural areas
Teaching Status:
Non-teaching
Fewer than 100 Residents
100 or more Residents
Urban DSH:
100 or more beds
Less than 100 beds
Rural DSH:
Sole Community (SCH/EACH)
Referral Center (RRC/EACH)
Other Rural:
100 or more beds
Average
FY 2017
payments/
case
820
791
-3.5
E:\FR\FM\04OCR1.SGM
04OCR1
Change
ER04OC17.004
sradovich on DSK3GMQ082PROD with RULES
Number of
hospitals
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
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10. On page 38576—
a. First column, last paragraph, line 4,
the figure ‘‘$41,430.56’’ is corrected to
read ‘‘$41,415.11’’.
b. Second column—
(1) First partial paragraph—
(a) Line 1, the figure ‘‘1.0006434’’ is
corrected to read ‘‘1.0002704’’.
(b) Line 12, the figure ‘‘$40,610.16’’ is
corrected to read ‘‘$40,595.02’’.
VerDate Sep<11>2014
17:39 Oct 03, 2017
Jkt 244001
(2) Second full paragraph, line 14, the
figure ‘‘1.0006434’’ is corrected to read
‘‘1.0002704’’.
11. On page 38578, second column,
second full paragraph—
a. Line 21, the figure ‘‘$41,430.56’’ is
corrected to read ‘‘$41,415.11’’.
b. Line 22, the figure ‘‘$40,610.16’’ is
corrected to read ‘‘$40,595.02’’.
12. On page 38579—
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a. Top of the page, the table title and
the table titled ‘‘TABLE IV: IMPACT OF
PAYMENT RATE AND POLICY
CHANGES TO LTCH PPS PAYMENTS
FOR STANDARD PAYMENT RATE
CASES FOR FY 2018 [Estimated FY
2017 payments compared to estimated
FY 2018 payments]’’ are corrected to
read as follows:
BILLING CODE 4120–01–P
E:\FR\FM\04OCR1.SGM
04OCR1
ER04OC17.005
BILLING CODE 4120–01–C
46159
sradovich on DSK3GMQ082PROD with RULES
46160
VerDate Sep<11>2014
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Percent
Change
Due to All
Standard
Federal
Payment
Rate
Changes5
(9)
1.0
E:\FR\FM\04OCR1.SGM
04OCR1
(4)
(5)
$47,109
0.9
2,223
71,692
41,253
30,439
$38,004
$46,905
$49,568
$43,294
$37,969
$47,392
$50,141
$43,665
0.9
0.9
0.9
0.9
-0.3
0.0
0.1
-0.1
-0.3
0.0
0.1
-0.2
-0.1
1.0
1.2
0.9
1,832
9,202
27,657
35,224
$43,730
$52,289
$46,363
$45,527
$44,550
$52,672
$46,847
$45,993
0.9
0.8
0.9
0.9
-0.6
-0.1
0.1
0.0
0.7
-0.2
0.1
-0.1
1.9
0.7
1.0
1.0
BY LOCATION:
RURAL
URBAN
LARGE
OTHER
21
394
199
195
BY PARTICIPATION DATE:
BEFORE OCT. 1983
OCT. 1983- SEPT.1993
OCT. 1993- SEPT. 2002
AFTER OCTOBER 2002
II
42
167
195
Frm 00038
ER04OC17.006
(6)
Proposed
Percent
Change Due
to Change to
the
Short-Stay
Outlier
Payment
Methodology
Change4
(8)
0.0
$46,637
No. of
LTCHs
(2)
415
L TCH Classification
(1)
ALL PROVIDERS
Average
FY 2018
LTCHPPS
Payment
Per
Standard
Federal
Payment
Rate1
Percent
Change
Due to
Changes to
Area Wage
Adjustment
with Wage
Budget
Neutrality3
(7)
0.0
Number
ofLTCH
PPS
Standard
Federal
Payment
Rate
Cases
(3)
73,915
AverageFY
2017 LTCH
PPS
Payment
Per
Standard
Federal
Payment
Rate
Percent
Change
Due to
Change
to the
Annual
Update to
the
Standard
Federal
Payment
Rate2
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
TABLE IV: IMPACT OF PAYMENT RATE AND POLICY CHANGES
TO LTCH PPS PAYMENTS FOR STANDARD FEDERAL PAYMENT RATE CASES FOR FY 2018
[Estimated FY 2017 payments compared to estimated FY 2018 payments]
sradovich on DSK3GMQ082PROD with RULES
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Jkt 244001
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Frm 00039
No. of
LTCHs
(2)
(3)
Average
FY 2018
LTCHPPS
Payment
Per
Standard
Federal
Payment
Rate1
(5)
(6)
Percent
Change
Due to
Changes to
Area Wage
Adjustment
with Wage
Budget
Neutrality3
(7)
Proposed
Percent
Change Due
to Change to
the
Short-Stay
Outlier
Payment
Methodology
Change4
(8)
Percent
Change
Due to All
Standard
Federal
Payment
Rate
Changes5
(9)
Fmt 4700
Sfmt 4725
E:\FR\FM\04OCR1.SGM
04OCR1
BY OWNERSHIP TYPE:
VOLUNTARY
PROPRIETARY
GOVERNMENT
329
14
9,636
62,783
1,496
$48,980
$46,105
$53,851
$49,287
$46,619
$53,609
0.9
0.9
0.9
-0.1
0.0
-0.2
-0.3
0.1
-1.1
0.6
1.1
-0.5
BY REGION:
NEW ENGLAND
MIDDLE ATLANTIC
SOUTH ATLANTIC
EAST NORTH CENTRAL
EAST SOUTH CENTRAL
WEST NORTH CENTRAL
WEST SOUTH CENTRAL
MOUNTAIN
PACIFIC
12
25
66
68
34
28
126
31
25
2,757
5,896
13,333
11,540
5,276
4,402
18,529
4,279
7,903
$43,309
$51,862
$46,700
$46,371
$43,787
$45,291
$41,578
$48,360
$57,760
$44,407
$52,195
$47,213
$46,731
$44,297
$45,233
$41,921
$48,774
$58,810
0.9
0.9
0.9
0.9
0.9
0.9
0.9
0.9
0.8
-0.3
-0.1
-0.1
0.0
0.0
0.1
0.01
-0.2
0.0
0.7
0.2
0.2
-0.1
0.5
-1.3
-0.4
-0.1
0.5
2.5
0.6
1.1
0.8
1.2
-0.1
0.8
0.9
1.8
BY BED SIZE:
BEDS: 0-24
BEDS: 25-49
BEDS: 50-74
BEDS: 75-124
BEDS: 125-199
BEDS: 200+
26
195
117
45
23
9
1,770
26,171
20,276
12,708
8,079
4,911
$46,206
$43,608
$48,220
$49,890
$47,633
$46,341
$46,345
$43,971
$48,529
$50,560
$48,228
$47,463
0.9
0.9
0.9
0.9
0.9
0.8
0.5
-0.1
-0.1
0.2
0.0
0.0
-0.7
0.0
-0.2
0.1
0.0
0.8
0.3
0.8
0.6
1.3
1.2
2.4
72
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
17:39 Oct 03, 2017
L TCH Classification
(1)
Number
ofLTCH
PPS
Standard
Federal
Payment
Rate
Cases
AverageFY
2017 LTCH
PPS
Payment
Per
Standard
Federal
Payment
Rate
(4)
Percent
Change
Due to
Change
to the
Annual
Update to
the
Standard
Federal
Payment
Rate2
46161
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04OCR1
13. On page 38585, middle of the
page, first column, first paragraph—
E:\FR\FM\04OCR1.SGM
figure ‘‘1.0006434’’ is corrected to read
‘‘1.0002704’’.
PO 00000
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17:39 Oct 03, 2017
b. Lower fourth of the page, third
column, partial paragraph, line 5, the
VerDate Sep<11>2014
ER04OC17.008
1 Estimated FY 2018 LTCH PPS payments for LTCH PPS standard Federal payment rate criteria based on the payment rate and factor changes applicable to such cases presented
in the preamble of and the Addendum to this final rule.
2 Percent change in estimated payments per discharge for L TCH PPS standard Federal payment rate cases from FY 2017 to FY 20 18 for the annual update to the L TCH PPS
standard Federal payment rate.
3 Percent change in estimated payments per discharge for LTCH PPS standard Federal payment rate cases from FY 2017 to FY 2018 for changes to the area wage level adjustment
under§ 412.525(c) (as discussed in section V.B. ofthe Addendum to this final rule).
4 Percent change in estimated payments per discharge for LTCH PPS standard Federal payment rate cases from FY 2017 to FY 2018 for change to the SSO payment methodology.
5 Percent change in estimated payments per discharge for LTCH PPS standard Federal payment rate cases from FY 2017 (shown in Column 4) to FY 2018 (shown in Column 5),
including all of the changes to the rates and factors applicable to such cases presented in the preamble and the Addendum to this final rule. We note that this column, which shows
the percent change in estimated payments per discharge for all changes, does not equal the sum of the percent changes in estimated payments per discharge for the annual update to
the LTCH PPS standard Federal payment rate (Column 6) and the changes to the area wage level adjustment with budget neutrality (Column 7) due to the effect of estimated
changes in both estimated payments to SSO cases (prior to accounting for the change to the SSO payment methodology) and aggregate HCO payments for LTCH PPS standard
Federal payment rate cases (as discussed in this impact analysis), as well as other interactive effects that cannot be isolated.
Federal Register / Vol. 82, No. 191 / Wednesday, October 4, 2017 / Rules and Regulations
a. Lines 34, the figure ‘‘2.7’’ is
corrected to read ‘‘2.5’’.
b. Line 38, the figure ‘‘$226’’ is
corrected to read ‘‘$227’’.
Dated: September 29, 2017.
Ann C. Agnew,
Executive Secretary to the Department,
Department of Health and Human Services.
[FR Doc. 2017–21325 Filed 9–29–17; 4:15 pm]
II. Summary of Errors
BILLING CODE 4120–01–C
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
42 CFR Parts 409, 411, 413, 424, and
488
[CMS–1679–CN]
RIN 0938–AS96
Medicare Program; Prospective
Payment System and Consolidated
Billing for Skilled Nursing Facilities for
FY 2018, SNF Value-Based Purchasing
Program, SNF Quality Reporting
Program, Survey Team Composition,
and Correction of the Performance
Period for the NHSN HCP Influenza
Vaccination Immunization Reporting
Measure in the ESRD QIP for PY 2020;
Correction
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Final rule; correction.
AGENCY:
This document corrects
technical errors in the final rule that
appeared in the August 4, 2017 Federal
Register, which will update the
payment rates used under the
prospective payment system (PPS) for
skilled nursing facilities (SNFs) for
fiscal year (FY) 2018.
DATES: This correction is effective
October 1, 2017.
FOR FURTHER INFORMATION CONTACT: John
Kane, (410) 786–0557.
SUPPLEMENTARY INFORMATION:
SUMMARY:
sradovich on DSK3GMQ082PROD with RULES
I. Background
In FR Doc. 2017–16256 (82 FR 36530),
the final rule entitled ‘‘Medicare
Program; Prospective Payment System
and Consolidated Billing for Skilled
Nursing Facilities for FY 2018, SNF
Value-Based Purchasing Program, SNF
Quality Reporting Program, Survey
Team Composition, and Correction of
the Performance Period for the NHSN
HCP Influenza Vaccination
Immunization Reporting Measure in the
ESRD QIP for PY 2020’’, there were a
number of technical errors that are
VerDate Sep<11>2014
17:39 Oct 03, 2017
identified and corrected in section IV.,
Correction of Errors. The provisions in
this correcting document are effective as
if they had been included in the
document that appeared in the August
4, 2017, Federal Register (hereinafter
referred to as the FY 2018 SNF PPS final
rule). Accordingly, the corrections are
effective October 1, 2017.
Jkt 244001
A. Summary of Errors in the Preamble
As discussed in the FY 2018 SNF PPS
final rule (82 FR 36539), in developing
the wage index to be applied to skilled
nursing facilities (SNFs) under the SNF
prospective payment system (PPS), we
use the updated, pre-reclassified
hospital inpatient prospective payment
system (IPPS) wage data, exclusive of
the occupational mix adjustment. For
FY 2018, the updated, unadjusted, prereclassified IPPS wage data used under
the SNF PPS are for hospital cost
reporting periods beginning on or after
October 1, 2013, and before October 1,
2014 (FY 2014 cost report data), as
discussed in the FY 2018 IPPS final rule
(82 FR 38130). In calculating the wage
index under the FY 2018 IPPS final rule,
we made inadvertent errors related to
the wage data collected from the
Medicare cost reports of six hospitals
which are located in CBSAs 24860 and
40340. Specifically, we used incorrect
wage data for these six hospitals to
calculate the final FY 2018 IPPS wage
indexes, the geographic adjustment
factor (GAF) (which is computed from
the wage index), as well as certain other
IPPS factors and adjustments.
These errors are identified, discussed
and corrected in the Medicare Program;
Hospital Inpatient Prospective Payment
Systems for Acute Care Hospitals and
the Long Term Care Hospital
Prospective Payment System and Policy
Changes and Fiscal Year 2018 Rates;
Quality Reporting Requirements for
Specific Providers; Medicare and
Medicaid Electronic Health Record
(EHR) Incentive Program Requirements
for Eligible Hospitals, Critical Access
Hospitals, and Eligible Professionals;
Provider-Based Status of Indian Health
Services and Tribal Facilities and
Organizations; Cost Reporting and
Provider Requirements; Agreement
Termination Notices; Correction (CMS–
1677–CN) that appears elsewhere in this
issue of the Federal Register.
As discussed above, we use the
updated, pre-reclassified, unadjusted
IPPS wage data in developing the wage
index used under the SNF PPS. Due to
the technical errors described above, the
published FY 2018 SNF PPS wage
indexes were incorrect. Thus, the use of
PO 00000
Frm 00041
Fmt 4700
Sfmt 4700
46163
the corrected wage data for the six
hospitals required the recalculation of
the final FY 2018 SNF PPS wage
indexes. Additionally, as discussed on
page 36543 of the FY 2018 SNF PPS
final rule, section 1888(e)(4)(G)(ii) of the
Act requires that we apply the wage
index in a manner that does not result
in aggregate payments under the SNF
PPS that are greater or less than would
otherwise be made if the wage index
adjustment had not been made. To
achieve this, we apply a budget
neutrality factor to the unadjusted SNF
PPS federal per diem base rates. Due to
the recalculation and subsequent
revision of the final FY 2018 SNF PPS
wage indexes, it was necessary to
recalculate the FY 2018 SNF PPS wage
index budget neutrality factor as well.
Revising the wage index budget
neutrality factor causes a change in the
unadjusted SNF PPS federal per diem
rates (provided in Tables 2 and 3 of the
FY 2018 SNF PPS final rule (82 FR
36535)), which then causes changes in
the case-mix adjusted SNF PPS rates
(provided in Tables 4 and 5 in the FY
2018 SNF PPS final rule (82 FR 36537
through 36538), as well as the labor
adjusted SNF PPS rates (provided in
Tables 6 and 7 of the FY 2018 SNF PPS
final rule (82 FR 36541 through 36543).
Finally, due to the recalculated wage
indexes, we recalculated the impact
analysis provided in Table 26 of the FY
2018 SNF PPS final rule (82 FR 36629).
The corrections to these errors are found
in section IV. of this document.
B. Summary of Errors in and Corrections
to Tables Posted on the CMS Web Site
We are correcting the wage indexes in
Tables A and B setting forth the wage
indexes for urban (Table A) and nonurban (Table B) areas based on CBSA
labor market areas, which are available
exclusively on the CMS Web site at
https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment/
SNFPPS/WageIndex.html. These tables
have been updated to reflect the
revisions discussed in this correcting
document.
We are republishing the wage indexes
in Tables A and B accordingly on the
CMS Web site at https://www.cms.gov/
Medicare/Medicare-Fee-for-ServicePayment/SNFPPS/WageIndex.html.
III. Waiver of Proposed Rulemaking
and Delayed Effective Date
We ordinarily publish a notice of
proposed rulemaking in the Federal
Register to provide a period for public
comment before the provisions of a rule
take effect in accordance with section
553(b) of the Administrative Procedure
Act (APA) (5 U.S.C. 553(b)). However,
E:\FR\FM\04OCR1.SGM
04OCR1
Agencies
[Federal Register Volume 82, Number 191 (Wednesday, October 4, 2017)]
[Rules and Regulations]
[Pages 46138-46163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21325]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
42 CFR Parts 405, 412, 413, 414, 416, 486, 488, 489, and 495
[CMS-1677-CN]
RIN-0938-AS98
Medicare Program; Hospital Inpatient Prospective Payment Systems
for Acute Care Hospitals and the Long-Term Care Hospital Prospective
Payment System and Policy Changes and Fiscal Year 2018 Rates; Quality
Reporting Requirements for Specific Providers; Medicare and Medicaid
Electronic Health Record (EHR) Incentive Program Requirements for
Eligible Hospitals, Critical Access Hospitals, and Eligible
Professionals; Provider-Based Status of Indian Health Service and
Tribal Facilities and Organizations; Costs Reporting and Provider
Requirements; Agreement Termination Notices; Correction
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: This document corrects technical and typographical errors in
the final rule that appeared in the August 14, 2017, issue of the
Federal Register, which will amend the Medicare hospital inpatient
prospective payment systems (IPPS) for operating and capital related
costs of acute care hospitals to implement changes arising from our
continuing experience with these systems for FY 2018.
DATES: This correction is effective October 1, 2017.
FOR FURTHER INFORMATION CONTACT: Donald Thompson, (410) 786-4487.
SUPPLEMENTARY INFORMATION:
I. Background
In FR Doc. 2017-16434 of August 14, 2017 (82 FR 37990) there were a
number of technical and typographical errors that are identified and
corrected by the Correction of Errors section of this correcting
document. The provisions in this correcting document are effective as
if they had been included in the document that appeared in the August
14, 2017 Federal Register. Accordingly, the corrections are effective
October 1, 2017.
II. Summary of Errors
A. Summary of Errors in the Preamble
On page 37990, we are making a conforming correction, removal of
the reference to part 488, based on the removal of the regulations text
for Sec. 488.5 described in section II.B. of this correcting document.
On pages 38067 and 38068, we are correcting technical errors in our
discussion and summary of and response to public comment regarding ICD-
10-PCS procedure codes describing procedures involving percutaneous
insertion of intraluminal or monitoring device. Specifically, we
erroneously referred to a count of 28 procedure codes describing
procedures involving the percutaneous insertion of intraluminal and
monitoring devices into central nervous system and other cardiovascular
body parts rather than 18 procedure codes. Of the 28 codes listed in
Table 6P.4b associated with the proposed rule, 10 procedure codes were
duplicative, and erroneously included in the table and in the total
number of codes referenced in the preamble. As indicated in the final
rule, after consideration of the public comments we received, we
maintained the designation of 15 procedure codes identified by the
commenters. For this reason, we are also correcting Table 6P.4b
associated with the final rule (as discussed in section II.E. of this
correcting document) to reflect the 3 distinct procedure codes for
which we finalized a change in designation, including to remove the
listings of ICD-10-PCS procedure codes 00H032Z (Insertion of Monitoring
Device into Brain, Percutaneous Approach) and 00H632Z (Insertion of
Monitoring Device into Cerebral Ventricle, Percutaneous Approach),
which we finalized to maintain as O.R. procedures for FY 2018, and are
making conforming changes to the corresponding count of codes listed in
that table as indicated on page 38068. Consistent with these
corrections, we are also correcting the description of the proposal on
page 38067 of the final rule. As a result of the corrections to Table
6P.4b associated with the final rule and the conforming corrections on
pages 38067 and 38068, we have made conforming changes to the ICD-10
MS-DRG Definitions Manual Version 35 and ICD-10 MS-DRG Grouper Software
Version 35 for FY 2018 to reflect the O.R. designation of ICD-10-PCS
procedure codes 00H032Z (Insertion of Monitoring Device into Brain,
Percutaneous Approach) and 00H632Z (Insertion of Monitoring Device into
Cerebral Ventricle, Percutaneous Approach), as finalized on page 38068
of the final rule for FY 2018.
In addition, after publication of the FY 2018 IPPS/LTCH PPS final
rule, we became aware that the logic for the ICD-10 MS-DRG Definitions
Manual Version 35 and the ICD-10 MS-DRG Grouper and Medicare Code
Editor (MCE) Version 35 Software erroneously designated the following
ICD-10-PCS procedure code as a non-O.R. procedure rather than as an
O.R. procedure as finalized on page 38072 of the final rule for FY
2018: 0BCC8ZZ (Extirpation of matter from right upper lung lobe, via
natural or artificial opening endoscopic). Therefore, we also made
changes to the ICD-10 MS-DRG Definitions Manual Version 35 and the ICD-
10 MS-DRG Grouper and MCE Version 35 Software to correctly reflect the
O.R. designation for this procedure code for FY 2018.
We recalculated the FY 2018 MS-DRG relative weights (and associated
statistics, such as average length of stay (ALOS)) as a result of the
corrections to the logic for the ICD-10 MS-DRG Grouper Version 35
Software discussed above. In addition, since the MS-LTC-DRGs used under
the LTCH PPS for FY 2018 are the same as the MS DRGs used under the
IPPS for FY 2018 (and as such use the same ICD-10 MS-DRG Grouper
Version 35 Software), we also recalculated the FY 2018 MS-LTC-DRG
relative weights (and associated statistics, such as geometric ALOS)
for the same reasons.
On page 38119, we made a technical error in describing which ICD-
10-PCS procedure codes will be used to identify cases involving
ZINPLAVATM that are eligible for new technology add-on
payments in FY 2018. Specifically, cases involving
ZINPLAVATM that are eligible for new technology add-on
payments will be identified by either of the ICD-10-PCS procedure codes
listed in the final rule (XW033A3 or XW043A3) (rather than requiring
the combination of both ICD-10-PCS procedure codes).
On pages 38132 and 38137, in our discussion of the wage indexes, we
provided incorrect values for the FY 2018 national average hourly wage
(unadjusted for occupational mix) and the FY 2018 occupational mix
adjusted national average hourly wage due to inadvertent errors related
to the wage data collected from the Medicare cost reports of six
hospitals (CMS Certification Numbers (CCNs) 240010, 420033, 420037,
420038, 420078, and 420102).
On page 38144, we made an inadvertent error in the mailing address
[[Page 46139]]
for the Medicare Geographic Review Board (MGCRB).
On page 38195, in our discussion regarding disproportionate share
hospitals (DSHs), we made errors in the June 2017 Office of the
Actuary's estimate for FY 2018 Medicare DSH payments.
On page 38225, we made typographical errors in our description of
several Hospital Readmissions Reduction Program (HRRP) measures.
On page 38249, in our response to a comment, we advertently
referenced the MORT-30-PN measure, instead of the PN Payment measure.
On page 38257 through 38259, in our discussion of the Hospital
Value-Based Purchasing (HVBP) Program, we made several typographical
and technical errors to references and dates.
On pages 38309 and 38310, we are correcting the MS-LTC-DRG
normalization factor and the MS-LTC DRG budget neutrality factor based
on the recalculation of the MS-LTC-DRG relative weights due to the
corrections to the MS-DRG Grouper Software Version 35 described
previously. (Because the MS-LTC-DRGs used under the LTCH PPS are the
same as the MS-DRGs used under the IPPS, the corrections to the MS-DRG
Grouper Software Version 35 described previously affect the MS-LTC-DRGs
groupings by extension.)
On pages 38426, 38434, 38440, and 38458, in our discussion of the
LTCH Quality Reporting Program (QRP), we made technical and
typographical errors including an error in our description of a quality
measure.
B. Summary of Errors in the Regulations Text
On page 38516, we inadvertently retained regulations language from
the proposed rule at Sec. 488.5(a)(21), regarding accrediting
organizations, after stating in the preamble of the final rule that we
had decided not to adopt such language. In addition, on page 38509, we
inadvertently retained a description of subjects set out in 42 CFR part
488 in the ``List of Subjects.'' We are correcting these errors by
removing the description of subjects, amendatory instructions, and
regulations text for part 488.
On page 38516, in the regulations text provisions for Sec. 495.4
(definitions for the Electronic Health Record (EHR) Incentive Program),
we inadvertently omitted the definition of certified electronic health
record technology (CEHRT) for 2018.
On page 38517, in the regulations text provisions for Sec. 495.24,
we inadvertently omitted an EHR measure change for eligible
professionals (EPs) in Sec. 495.24(d)(6)(i)(B)(1)(iv).
C. Summary of Errors in the Addendum
As discussed in section II.A. of this correcting document, we are
making corrections to the logic for the ICD-10 MS-DRG Grouper Version
35 Software for three ICD-10-PCS procedure codes (0BCC8ZZ, 00H032Z and
00H632Z) that had been erroneously designated as non-O.R. procedures
rather than as O.R. procedures as finalized for FY 2018. As a result,
we have recalculated the FY 2018 MS-DRG relative weights after applying
the changes in the Version 35 MS-DRG groupings to the FY 2016 MedPAR
data used for the final rule.
The FY 2018 MS-DRG relative weights are used to calculate the MS-
DRG reclassification and recalibration budget neutrality factor when
comparing total payments using FY 2017 MS-DRG relative weights to total
payments using the FY 2018 MS-DRG relative weights. Additionally, the
FY 2018 MS-DRG relative weights are used when determining total
payments for purposes of all other budget neutrality factors and the
final outlier threshold, which are discussed in this section II.C. of
this correcting document.
As discussed in section II.E. of this correcting document, we made
several technical errors with regard to the calculation of Factor 3 of
the uncompensated care payment methodology. Factor 3 is used to
determine the total amount of the uncompensated care payment a hospital
is eligible to receive for a fiscal year. This amount is then used to
calculate the amount of the interim uncompensated care payments a
hospital receives per discharge. Per discharge uncompensated care
payments are included when determining total payments for purposes of
all of the budget neutrality factors and the final outlier threshold.
As a result, the revisions made to address these technical errors
regarding the calculation of Factor 3 directly affected the calculation
of total payments and required the recalculation of all the budget
neutrality factors and the final outlier threshold.
Because of the errors in the wage data for the six hospitals (CCNs
240010, 420033, 420037, 420038, 420078, and 420102), as discussed in
section II.A. of this correcting document, we recalculated the FY 2018
national average hourly wages unadjusted for occupational mix and
adjusted for occupational mix which resulted in the recalculation of
the final FY 2018 IPPS wage indexes and the geographic adjustment
factors (GAFs) (which are computed from the wage index). The final FY
2018 IPPS wage data are used in the calculation of the wage index
budget neutrality adjustment when comparing total payments using the
final FY 2017 IPPS wage index data to total payments using the final FY
2018 IPPS wage index data. Additionally, the final FY 2018 IPPS wage
index data are used when determining total payments for purposes of the
rest of the budget neutrality factors (except for the MS-DRG
reclassification and recalibration budget neutrality factor) and the
final outlier threshold. In addition, the final FY 2018 IPPS wage index
data are used to calculate the FY 2018 LTCH PPS wage index values,
certain budget neutrality factors, and the LTCH PPS standard Federal
payment rate in the FY 2018 IPPS/LTCH PPS final rule.
Due to the correction of the combination of errors listed
previously (recalculation of the MS-DRG relative weights, revisions to
Factor 3 of the uncompensated care methodology and correction to the
final FY 2018 IPPS wage index data), we recalculated all IPPS budget
neutrality adjustment factors, the fixed-loss cost threshold, the final
wage indexes (and GAFs), and the national operating standardized
amounts and capital Federal rate. Therefore, we made conforming changes
to the following:
On page 38522 and 38532, the MS-DRG reclassification and
recalibration budget neutrality factor.
On page 38522, the wage index budget neutrality
adjustment.
On page 38522, the reclassification hospital budget
neutrality adjustment.
On page 38523, the rural and imputed floor budget
neutrality adjustment.
On page 38527, the calculation of the outlier fixed-loss
cost threshold, the national outlier adjustment factors, total
operating Federal payments, total operating outlier payments, and
percentage of capital outlier payments.
On page 38529, the table titled ``Changes From FY 2017
Standardized Amounts to the FY 2018 Standardized Amounts''.
On pages 38532 and 38534 through 38535, in our discussion of the
determination of the Federal hospital inpatient capital related
prospective payment rate update, due to the recalculation of the MS-DRG
relative weights and GAFs we have made conforming corrections to the
increase in the capital Federal rate, the capital outlier payment
adjustment (budget neutrality) factor, the GAF/DRG budget neutrality
adjustment factors, the capital Federal rate, and the outlier threshold
(as discussed previously), along with
[[Page 46140]]
certain statistical figures (for example, percent change) in the
accompanying discussions.
Also, as a result of these errors, on page 38535, we have made
conforming corrections in the tables showing the comparison of factors
and adjustments for the FY 2017 capital Federal rate and FY 2018
capital Federal rate and the proposed FY 2018 capital Federal rate and
final FY 2018 capital Federal rate.
On pages 38537 and 38539, we are correcting the area wage level
budget neutrality factor and making a conforming change to the FY 2018
LTCH PPS standard Federal payment rate due to corrections to the wage
data discussed previously.
On page 38544, we are making conforming corrections to the fixed-
loss amount for FY 2018 LTCH PPS standard Federal payment rate
discharges and the high-cost outlier (HCO) threshold determined in
absence of the required changes under the 21st Century Cures Act due to
corrections in the MS-LTC-DRG data discussed previously.
On page 38545, we are making conforming corrections to the fixed-
loss amount for site neutral discharges due to corrections in the IPPS
rates and factors discussed previously.
On pages 38546 and 38547, we are making conforming corrections to
the figures used in the example of computing the adjusted LTCH PPS
Federal prospective payment for FY 2018.
On page 38548, we have made conforming corrections to the
following:
National adjusted operating standardized amounts and
capital standard Federal payment rate (which also include the rates
payable to hospitals located in Puerto Rico) in Tables 1A, 1B, 1C, and
1D as a result of the conforming corrections to certain budget
neutrality factors and the outlier threshold (as described previously).
LTCH PPS standard Federal payment rate in Table 1E as a
result of the correction to area wage level budget neutrality factor
(as discussed previously).
Also, on page 38548, in Table 1E, we are correcting a technical
error in our terminology by replacing ``Standard Federal Rate'' with
`Standard Federal Payment Rate''.
D. Summary of Errors in the Appendices
On pages 38552 through 38560 and 38572 through 38574 in our
regulatory impact analyses, we made conforming corrections to the
factors, values, and tables and accompanying discussion of the changes
in operating and capital IPPS payments for FY 2018 and the effects of
certain budget neutrality factors as a result of the technical errors
that lead to conforming changes in our calculation of the operating and
capital IPPS budget neutrality factors, outlier threshold, final wage
indexes, operating standardized amounts, and capital Federal rate (as
described in sections II.A. and II.C. of this correcting document).
In particular, we made changes to the following tables.
On pages 38552 through 38554, the table titled ``Table
I.--Impact Analysis of Changes to the IPPS for Operating Costs for FY
2018''.
On pages 38557 through 38558, the table titled ``FY 2018
IPPS Estimated Payments Due To Rural and Imputed Floor With National
Budget Neutrality''.
On pages 38559 and 38560, the table titled ``Table II--
Impact Analysis of Changes for FY 2018 Acute Care Hospital Operating
Prospective Payment System [Payments per Discharge]''.
On pages 38572 through 38574, the table titled ``Table
III--Comparison of Total Payments Per Case [FY 2017 Payments Compared
to FY 2018 Payments]''.
On pages 38561 through 38564, we are correcting the discussion of
the ``Effects of the Changes to Medicare DSH and Uncompensated Care
Payments for FY 2018'' for purposes of the Regulatory Impact Analysis
in Appendix A of the FY 2018 IPPS/LTCH PPS final rule in light of the
corrections discussed in sections II.D. and II.E. of this correcting
document.
On pages 38576 and 38578 through 38579, we made conforming
corrections to the area wage level budget neutrality factor and the
LTCH PPS standard Federal payment rate as described in section II.C. of
this correcting document.
On page 38579, we are making conforming corrections to ``Table
IV.--Impact of Payment Rate and Policy Changes to LTCH PPS Payments for
Standard Payment Rate Cases for FY 2018.'' We are also correcting
technical errors in the terminology used in the title and column
headings of Table IV by ensuring the use of ``Standard Federal Payment
Rate''.
On page 38585, we made conforming corrections to the estimated
increase in capital payments in FY 2018 compared to FY 2017.
E. Summary of Errors in and Corrections to Files and Tables Posted on
the CMS Web Site
We are correcting the errors in the following IPPS tables that are
listed on pages 38547 and 38548 of the FY 2018 IPPS/LTCH PPS final rule
and are available on the Internet on the CMS Web site at https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/FY2018-IPPS-Final-Rule-Home-Page.html. The tables
that are available on the Internet have been updated to reflect the
revisions discussed in this correcting document.
Table 2--Case-Mix Index and Wage Index Table- FY 2018. The wage
data errors related to the six hospitals required the recalculation of
the FY 2018 national average hourly wages unadjusted for occupational
mix and adjusted for occupational mix which resulted in recalculating
the FY 2018 wage indexes. Also, the recalculation of the MS-DRG
relative weights, the revisions to Factor 3 of the uncompensated care
payment methodology and recalculation of the FY 2018 wage index
necessitated the recalculation of the rural and imputed floor budget
neutrality factor (as discussed in section II.C. of this correcting
document). Therefore, we are correcting the values in the column titled
``FY 2018 Wage Index'' for all hospitals. Additionally, for the six
hospitals for which we inadvertently used the incorrect wage data (as
discussed in section II.A. of this correcting document), we are
correcting the average hourly wages in the columns titled ``Average
Hourly Wage FY 2018'' and ``3-Year Average Hourly Wage (2016, 2017,
2018)''.
Table 3.--Wage Index Table by CBSA-FY 2018. The wage data errors
related to the six hospitals required the recalculation of the FY 2018
national average hourly wage adjusted for occupational mix which
resulted in recalculating the FY 2018 wage indexes. Also, the
recalculation of the MS-DRG relative weights, the revisions to Factor 3
of the uncompensated care payment methodology, and recalculation of the
FY 2018 wage index necessitated the recalculation of the rural and
imputed floor budget neutrality factor (as discussed in section II.C.
of this correcting document). Therefore, we are making corresponding
changes to the wage indexes and GAFs of all CBSAs listed in Table 3.
Specifically, we are correcting the values and flags in the columns
titled ``Wage Index'', ``Reclassified Wage Index'', ``GAF'',
``Reclassified GAF'', ``Pre-Frontier and/or Pre-Rural or Imputed Floor
Wage Index'' and ``Eligible for Rural or Imputed Floor Wage Index''.
Additionally, for the two CBSAs (24860 and 40340) where the six
hospitals for which we inadvertently used the incorrect wage data are
located (as discussed in section II.A. of this correcting document), we
are correcting the average hourly wages in the
[[Page 46141]]
columns titled ``FY 2018 Average Hourly Wage'' and ``3-Year Average
Hourly Wage (2016, 2017, 2018)''. As we described previously, we
inadvertently used the incorrect wage data for the following hospitals:
CCNs 240010, 420033, 420037, 420038, 420078 and 420102.
Table 5.--List of Medicare Severity Diagnosis-Related Groups (MS-
DRGs), Relative Weighting Factors, and Geometric and Arithmetic Mean
Length of Stay--FY 2018. We are correcting this table to reflect the
recalculation of the FY 2018 MS-DRG relative weights and associated
statistics as a result of the corrections to the logic for the ICD-10
MS-DRG Grouper Version 35 Software discussed in section II.A. of this
correcting document. Specifically, we are correcting the values in the
columns titled ``Weights'', ``Geometric mean LOS'', and ``Arithmetic
mean LOS''.
Table 6P.--ICD-10-CM and ICD-10-PCS Code Designations, MCE and MS-
DRG Changes--FY 2018. As discussed in section II.A of this correcting
document, we are correcting the list of the ICD-10-PCS procedure codes
in Table 6P.4b to reflect the three ICD-10-PCS procedure codes relating
to the percutaneous insertion of intraluminal or monitoring devices
that are finalized as non-O.R. procedures for FY 2018.
Table 7B.--Medicare Prospective Payment System Selected Percentile
Lengths of Stay: FY 2016 MedPAR Update--March 2017 GROUPER V35.0 MS-
DRGs. We are correcting this table to reflect the recalculation of the
FY 2018 MS-DRG relative weights and associated statistics as a result
of the corrections to the logic for the ICD-10 MS-DRG Grouper Version
35 Software discussed in section II.A. of this correcting document.
Table 10--New Technology Add-On Payment Thresholds for Applications
for FY 2019. We are correcting the thresholds in this table as a result
of the corrections to the operating standardized amounts discussed in
section II.C. of this correcting document.
Table 18.--Final FY 2018 Medicare DSH Uncompensated Care Payment
Factor 3. We are correcting this table to reflect revisions to the
Factor 3 calculations for purposes of determining uncompensated care
payments for the FY 2018 IPPS/LTCH PPS final rule for the following
reasons:
To apply our finalized policy of double weighting the 2013
Factor 3 instead of developing a 2014 Factor 3 using uncompensated care
cost data from Worksheet S-10 for several all-inclusive rate providers.
To reflect mergers where data for the merged hospital were
not combined with the data for the surviving hospital for purposes of
calculating Factor 3 for the FY 2018 IPPS/LTCH PPS Final Rule.
To correct the Factor 3 that was computed for a hospital
whose FY 2014 cost report in the March 2017 extract of Healthcare Cost
Report Information System (HCRIS) inadvertently omitted amended
uncompensated care cost data reported on an amended Worksheet S-10 that
had been received timely per CR 9648 issued on July, 15, 2016, and that
was inadvertently omitted from the hospital's 2014 cost report when it
was uploaded into HCRIS.
To correct the Factor 3 that was computed for a hospital
that only had Factor 3 values for two cost reporting periods, but whose
Factor 3 was inadvertently calculated by dividing by three cost
reporting periods when averaging the Factor 3 values.
To correct the misapplication of our new hospital policy,
where hospitals with a CMS Certification Number (CCN) established after
October 1, 2013, but before October 1, 2014, were inadvertently
considered subject to that policy when calculating Factor 3. As stated
in the FY 2018 IPPS/LTCH PPS final rule (82 FR 38212), only those
hospitals with a CCN established after October 1, 2014, are considered
new and subject to the new hospital policy when calculating Factor 3
for FY 2018.
We are revising Factor 3 for all hospitals to correct these errors.
We are also revising the amount of the total uncompensated care payment
calculated for each DSH-eligible hospital. The total uncompensated care
payment that a hospital receives is used to calculate the amount of the
interim uncompensated care payments the hospital receives per
discharge. Per discharge uncompensated care payments are included when
determining total payments for purposes of all of the budget neutrality
factors and the final outlier threshold. As a result, these corrections
to the uncompensated care payments impacted the calculation of all the
budget neutrality factors as well as the outlier fixed-loss cost
threshold for outlier payments. These corrections will be reflected in
Table 18 and the Medicare DSH Supplemental Data File. In section II.D.
of this correcting document, we have made corresponding revisions to
the discussion of the ``Effects of the Changes to Medicare DSH and
Uncompensated Care Payments for FY 2018'' for purposes of the
Regulatory Impact Analysis in Appendix A of the FY 2018 IPPS/LTCH PPS
final rule to reflect the corrections discussed previously.
We are also correcting the errors in the following LTCH PPS tables
that are listed on page 38548 of the FY 2018 IPPS/LTCH PPS final rule
and are available on the Internet on the CMS Web site at https://www.cms.gov/Medicare/Medicare-Fee-for-ServicePayment/LongTermCareHospitalPPS/ under the list item for regulation
number CMS-1677-F. The tables that are available on the Internet have
been updated to reflect the revisions discussed in this correcting
document.
Table 11.--MS-LTC-DRGs, Relative Weights, Geometric Average Length
of Stay, and Short-Stay Outlier (SSO) Threshold for LTCH PPS Discharges
Occurring from October 1, 2017 through September 30, 2018. We are
correcting this table to reflect the recalculation of the FY 2018 MS-
LTC-DRG relative weights and associated statistics as a result of the
corrections to the logic for the Version 35 Grouper Software discussed
in section II.A. of this correcting document.
Table 12A.--LTCH PPS Wage Index for Urban Areas for Discharges
Occurring from October 1, 2017 through September 30, 2018. We are
correcting this table to reflect the revisions to the LTCH PPS wage
index values discussed in section II.C. of this correcting document.
Table 12B.--LTCH PPS Wage Index for Rural Areas for Discharges
Occurring from October 1, 2017 through September 30, 2018. We are
correcting this table to reflect the revisions to the LTCH PPS wage
index values discussed in section II.C. of this correcting document.
We also note that we have made conforming changes to the ICD-10 MS-
DRG Definitions Manual Version 35 for consistency with the ICD-10 MS-
DRG Grouper and Medicare Code Editor (MCE) Version 35 Software. First,
the ICD-10-CM diagnosis code P05.18 (Newborn small for gestational age,
2000-2499 grams) was displayed in the ICD-10 MS-DRG Definitions Manual
Version 35 as grouping to both MS-DRGs 793 (Full Term Neonate with
Major Problems) and 795 (Normal Newborn). The correct MS-DRG assignment
for diagnosis code P05.18 is only MS-DRG 795; therefore, corrections
were made to the ICD-10 MS-DRG Definitions Manual Version 35 to reflect
the correct MS-DRG assignment. Second, the following 9 diagnosis codes
were not included in the major problem list in the MS-DRG Definitions
Manual: K56.600 (Partial intestinal obstruction, unspecified as to
cause); K56.601 (Complete intestinal obstruction, unspecified as to
cause);
[[Page 46142]]
K56.609 (Unspecified intestinal obstruction, unspecified as to partial
versus complete obstruction); K56.690 (Other partial intestinal
obstruction); K56.691(Other complete intestinal obstruction); K56.699
(Other intestinal obstruction unspecified as to partial versus complete
obstruction); K91.30 (Postprocedural intestinal obstruction,
unspecified as to partial versus complete); K91.31 (Postprocedural
partial intestinal obstruction); and K91.32 (Postprocedural complete
intestinal obstruction). We made corrections to add these 9 diagnosis
codes to the major problems list for MS-DRG 793 under Major Diagnostic
Category (MDC) 15 (Newborns & Other Neonates with Conditions
Originating in Perinatal Period) in the ICD-10 MS-DRG Definitions
Manual Version 35.
III. Waiver of Proposed Rulemaking and Delay in Effective Date
We ordinarily publish a notice of proposed rulemaking in the
Federal Register to provide a period for public comment before the
provisions of a rule take effect in accordance with section 553(b) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). However, we
can waive this notice and comment procedure if the Secretary finds, for
good cause, that the notice and comment process is impracticable,
unnecessary, or contrary to the public interest, and incorporates a
statement of the finding and the reasons therefore in the notice.
Section 553(d) of the APA ordinarily requires a 30-day delay in the
effective date of final rules after the date of their publication in
the Federal Register. This 30-day delay in effective date can be
waived, however, if an agency finds for good cause that the delay is
impracticable, unnecessary, or contrary to the public interest, and the
agency incorporates a statement of the findings and its reasons in the
rule issued.
We believe that this correcting document does not constitute a rule
that would be subject to the APA notice and comment or delayed
effective date requirements. This correcting document corrects
technical and typographic errors in the preamble, regulations text,
addendum, payment rates, tables, and appendices included or referenced
in the FY 2018 IPPS/LTCH PPS final rule but does not make substantive
changes to the policies or payment methodologies that were adopted in
the final rule. As a result, this correcting document is intended to
ensure that the information in the FY 2018 IPPS/LTCH PPS final rule
accurately reflects the policies adopted in that final rule.
In addition, even if this were a rule to which the notice and
comment procedures and delayed effective date requirements applied, we
find that there is good cause to waive such requirements. Undertaking
further notice and comment procedures to incorporate the corrections in
this document into the final rule or delaying the effective date would
be contrary to the public interest because it is in the public's
interest for providers to receive appropriate payments in as timely a
manner as possible, and to ensure that the FY 2018 IPPS/LTCH PPS final
rule accurately reflects our policies. Furthermore, such procedures
would be unnecessary, as we are not altering our payment methodologies
or policies, but rather, we are simply implementing correctly the
policies that we previously proposed, received comment on, and
subsequently finalized. This correcting document is intended solely to
ensure that the FY 2018 IPPS/LTCH PPS final rule accurately reflects
these payment methodologies and policies. Therefore, we believe we have
good cause to waive the notice and comment and effective date
requirements.
Correction of Errors
In FR Doc. 2017-16434 of August 14, 2017 (82 FR 37990), we are
making the following corrections:
A. Corrections of Errors in the Preamble
1. On page 37990, first column, line 8 (Part headings), the figures
``486, 488, 489, and 495'' are corrected to read ``486, 489, and 495''.
2. On page 38067--
a. Second column, last partial paragraph, line 1, the figure ``28''
is corrected to read ``18''.
b. Third column--
(1) First partial paragraph--
(a) Line 7, the phrase ``28 ICD-10-PCS'' is corrected to read ``28
(18 discrete) ICD-10-PCS''.
(b) Line 15, the phrase ``O.R. procedures. We invite public'' is
corrected to read ``O.R. procedures. (We note that Table 6P.4b.
associated with the proposed rule listed 28 rather than 18 ICD-10-PCS
codes because we inadvertently included 10 duplicate codes. However
only 18 discrete ICD-10-PCS codes were listed in that table.) We invite
public''.
(2) First full paragraph--
(a) Line 3, the figure ``28'' is corrected to read ``18''.
(b) Line 9, the figure ``28'' is corrected to read ``18''.
3. On page 38068, top half of the page (between the untitled
tables) first column--
a. First paragraph, line 5, the figure ``28'' is corrected to read
``18''.
b. Second paragraph, line 4, the figure ``13'' is corrected to read
``3''.
4. On page 38119, third column, first partial paragraph, lines 25
and 26, the phrase ``XW033A3 and XW043A3.'' is corrected to read
``XW033A3 or XW043A3.''
5. On page 38132--
a. Second column, first paragraph, last line, the figure
``$42.1027'' is corrected to read ``$42.0795''.
b. Third column, first partial paragraph, line 4, the figure
$42.1027'' is corrected to read ``$42.0795''.
6. On page 38137, third column--
a. First full paragraph, last line, the figure $42.0564'' is
corrected to read ``$42.0332''.
b. Last full paragraph, last line, the figure $42.0564'' is
corrected to read ``$42.0332''.
7. On page 38144, first column, first partial paragraph, lines 8
through 10, the phrase ``2520 Lord Baltimore Drive, Suite L, Baltimore,
MD 21244- 2670.'' is corrected to read ``1508 Woodlawn Drive, Suite
100, Baltimore, MD 21207.''.
8. On page 38195--
a. Top of the page, third column, first full paragraph, line 19,
the figure ``$15.533'' is corrected to read ``$15.553''.
b. Bottom of the page in the table titled ``FACTORS APPLIED FOR FY
2015 THROUGH FY 2018 TO ESTIMATE MEDICARE DSH EXPENDITURES USING 2014
BASELINE'' last row (FY 2018), last column (Estimated DSH payment), the
entry ``15.533'' is corrected to read ``15.553''.
9. On page 38225--
a. First column, last bulleted paragraph, lines 3 through 5, the
phrase ``(AMI-Version 8.0, HF-Version 8.0, Pneumonia-Version 8.0, COPD-
Version 4.0, and Stroke-Version 4.0: 2016'' is corrected to read
``(AMI-Version 9.0, HF-Version 9.0, Pneumonia-Version 9.0, COPD-Version
5.0, and Stroke-Version 5.0: 2016''.
b. Second column; first bulleted paragraph, lines 2 through 4, the
phrase ``(THA and/or TKA-Version 4.0, CABG-Version 2.0: 2016'' is
corrected to read ``(THA and/or TKA-Version 5.0, CABG-Version 3.0:
2016)''.
10. On page 38249, second column, last paragraph, lines 23 and 24,
the parenthetical phrase ``(for example, the MORT-30-PN measure)'' is
corrected to read ``(for example, PN Payment measure)''.
11. On page 38257, third column, footnote paragraph (footnote 69),
last line, the date ``Mar 1997'' is corrected to read ``Mar 1977''.
12. On page 38258, first column, third paragraph--
[[Page 46143]]
a. Lines 8 and 9, the reference ``(78 FR 50074;'' is corrected to
read ``(79 FR 50074;''.
b. Line 9, the reference ``80 FR 49588).'' is corrected to read
``80 FR 49558).''.
13. On page 38259, first column, first partial paragraph, line 14,
the date ``June 0'' is corrected to read ``June 30''.
14. On page 38309, third column, first full paragraph, line 29 the
figure ``1.28590'' is corrected to read ``1.28593''.
15. On page 38310, first column--
a. First full paragraph, line 29, the figure ``0.9907845'' is
corrected to read ``0.9907437''.
b. Second full paragraph--
(1) Line 5, the figure ``1.28590'' is corrected to read
``1.28593''.
(2) Line 6, the figure ``0.9907845'' is corrected to read
``0.9907437''.
16. On page 38426--
a. First column, second full paragraph, line 21, the phrase ``an
Application of Percent'' is corrected to read ``Application of
Percent''.
b. Third column, third full paragraph, line 10, the phrase
``criteria; however should'' is corrected to read ``criteria. However,
the measure should''.
17. On page 38434, in the first column, second paragraph--
a. Line 29, the phrase ``Stage 3 or 4 ulcers.'' is corrected to
read ``Stage 3 or 4 pressure ulcers.''.
b. Line 31, the phrase ``Stage 1 and 2 ulcers decreased'' is
corrected to read ``Stage 1 and 2 pressure ulcers decreased''.
c. Line 32, the phrase '' of Stage 3 and 4 ulcers'' is corrected to
read ``of Stage 3 and 4 pressure ulcers''.
18. On page 38440, third column, last paragraph--
a. Lines 10 and 11, the phrase ``That nearly one third'' is
corrected to read ``The fact that nearly one third''.
b. Lines 16 and 17, the phrase ``LTCH, and also indicates'' is
corrected to read ``LTCH. It also indicates''.
19. On page 38458, third column, second full paragraph--
a. Lines 21 through 23, the phrase (measure name) ``Functional
Outcome Measure: Change in Mobility Among Patients Requiring Ventilator
Support (NQF #2632).'' is corrected to read ``Functional Outcome
Measure: Change in Mobility Among Long-Term Care Hospital (LTCH)
Patients Requiring Ventilator Support (NQF #2632).''.
b. Lines 31 through 34, the phrase (measure name) ``Functional
Outcome Measure: Change in Mobility Among Patients Requiring Ventilator
Support (NQF #2632)'' is corrected to read ``Functional Outcome
Measure: Change in Mobility Among Long-Term Care Hospital (LTCH)
Patients Requiring Ventilator Support (NQF #2632).''
20. On page 38509, second column, eighth full paragraph (List of
subjects 42 CFR 488), the paragraph is corrected by removing the
paragraph.
B. Correction of Errors in the Regulations Text
1. On page 38516, in the first column, remove the part heading for
part 488 and remove amendatory instructions 34 and 35 in their
entirety.
Sec. 495.4 [Corrected]
2. On page 38516, in the second column, after amendatory
instruction 39a, add amendatory instruction a2 to read--
``a2. In the definition of ``Certified electronic health record
technology (CEHRT)'':
i. In paragraph (1)(iii), removing the phrase ``for 2018 subsequent
years'' and adding in its place the phrase ``for 2019 and subsequent
years''; and
ii. In the introductory text of paragraph (2), removing the phrase
``For 2018 and subsequent years,'' and adding in its place the phrase
``For 2019 and subsequent years,''.''
Sec. 495.24 [Corrected]
3. On page 38517, second column, sixth full paragraph, amendatory
instruction 41d is corrected and amendatory instructions 41e and f are
correctly added to read as follows:
``d. Revising the paragraph (d) heading.
e. In paragraph (d)(6)(i)(B)(1)(iv) by removing the phrase ``For an
EHR reporting period in 2017 only, an EP'' and adding in its place the
phrase ``For an EHR reporting period in 2017 and 2018, an EP''.
f. Revising paragraphs (d)(6)(i)(B)(2)(i) and (ii),
(d)(6)(ii)(B)(1)(iv), and (d)(6)(ii)(B)(2)(i) and (ii).''
C. Correction of Errors in the Addendum
1. On page 38522 --
a. Second column, first full paragraph--
(1) Line 3, the figure ``0.997432'' is corrected to read
``0.997439''.
(2) Line 8, the figure ``0.997432'' is corrected to read
``0.997439''.
b. Third column--
(1) First full paragraph, line 9, the figure ``1.001148'' is
corrected to read ``1.000882''.
(2) Last paragraph, line 11 the figure ``0.988008'' is corrected to
read ``0.987985''.
2. On page 38523, second column, first partial paragraph, line 2,
the figure ``0.993348'' is corrected to read ``0.993324''.
3. On page 38527, lower two-thirds of the page (after the first
untitled table), third column--
a. First partial paragraph--
(1) Line 4, the figure ``$26,601'' is corrected to read
``$26,537''.
(2) Line 5, the figure ``85,942,484,975'' is corrected to read
``$90,203,348,168''.
(3) Line 6, the figure ``$4,618,707,285'' is corrected to read
``$4,600,554,656''.
(4) Line 17, the figure ``$26,601'' is corrected to read
``$26,537''.
b. First full paragraph, line 13, the figure ``5.16'' is corrected
to read ``5.17''.
c. Following the third full paragraph, the untitled table is
corrected to read as follows:
------------------------------------------------------------------------
Operating
standardized Capital federal
amounts rate
------------------------------------------------------------------------
National.............................. 0.948998 0.948259
------------------------------------------------------------------------
4. On page 38529, top of the page, the table titled ``CHANGES FROM
FY 2017 STANDARDIZED AMOUNTS TO THE FY 2018 STANDARDIZED AMOUNTS'', is
corrected to read as follows:
[[Page 46144]]
Changes From FY 2017 Standardized Amounts to the FY 2018 Standardized Amounts
----------------------------------------------------------------------------------------------------------------
Hospital submitted Hospital did NOT Hospital did NOT
Hospital submitted quality data and submit quality submit quality
quality data and is NOT a data and is a data and is NOT a
is a meaningful meaningful EHR meaningful EHR meaningful EHR
EHR user user user user
----------------------------------------------------------------------------------------------------------------
FY 2018 Base Rate after
removing:
1. FY 2017 Geographic If Wage Index is If Wage Index is If Wage Index is If Wage Index is
Reclassification Budget Greater Than Greater Than Greater Than Greater Than
Neutrality (0.988136). 1.0000: 1.0000: 1.0000: 1.0000:
2. FY 2017 Operating Outlier Labor (68.3%): Labor (68.3%): Labor (68.3%): Labor (68.3%):
Offset (0.948998). $3,993.72. $3,993.72. $3,993.72. $3,993.72.
3. FY 2017 2-Midnight Rule Nonlabor Nonlabor Nonlabor Nonlabor
One-Time Prospective (30.4%): (30.4%): (30.4%): (30.4%):
Increase (1.006). $1,853.60. $1,853.60. $1,853.60. $1,853.60.
4. FY 2017 Labor Market If Wage Index is If Wage Index is If Wage Index is If Wage Index is
Delineation Wage Index less Than or less Than or less Than or less Than or
Transition Budget Equal to 1.0000: Equal to 1.0000: Equal to 1.0000: Equal to 1.0000:
Neutrality Factor
(0.999997).
Labor (62%): Labor (62%): Labor (62%): Labor (62%):
$3,625.34. $3,625.34. $3,625.34. $3,625.34.
Nonlabor (38%): Nonlabor (38%): Nonlabor (38%): Nonlabor (38%):
$2,221.98. $2,221.98. $2,221.98. $2,221.98.
FY 2018 Update Factor........... 1.0135............ 0.99325........... 1.00675........... 0.9865.
FY 2018 MS-DRG Recalibration 0.997439.......... 0.997439.......... 0.997439.......... 0.997439.
Budget Neutrality Factor.
FY 2018 Wage Index Budget 1.000882.......... 1.000882.......... 1.000882.......... 1.000882.
Neutrality Factor.
FY 2018 Reclassification Budget 0.987985.......... 0.987985.......... 0.987985.......... 0.987985.
Neutrality Factor.
FY 2018 Operating Outlier Factor 0.948998.......... 0.948998.......... 0.948998.......... 0.98998.
Adjustment for FY 2018 Required 1.004588.......... 1.004588.......... 1.004588.......... 1.004588.
under Section 414 of Pub. L.
114-10 (MACRA) and Section
15005 of Pub. L. 114-255.
National Standardized Amount for Labor: $3,806.04.. Labor: $3,729.99.. Labor: $3,780.69.. Labor: $3,704.65.
FY 2018 if Wage Index is Nonlabor: Nonlabor: Nonlabor: Nonlabor:
Greater Than 1.0000; Labor/Non- $1,766.49. $1,731.20. $1,754.73. $1,719.43.
Labor Share Percentage (68.3/
31.7).
National Standardized Amount for Labor: $3,454.97.. Labor: $3,385.94.. Labor: $3,431.96.. Labor: $3,362.93.
FY 2018 if Wage Index is less Nonlabor: Nonlabor: Nonlabor: Nonlabor:
Than or Equal to 1.0000; Labor/ $2,117.56. $2,075.25. $2,103.46. $2,061.15.
Non-Labor Share Percentage (62/
38).
----------------------------------------------------------------------------------------------------------------
5. On page 38532, lower two-thirds of the page (after the untitled
table)--
a. First column, second full paragraph, line 13, the figure
``0.997432'' is corrected to read ``0.997439''.
b. Third column, second full paragraph, line 6, the figure ``1.61''
is corrected to read ``1.60''.
6. On page 38534--
a. First column--
(1) First full paragraph--
(a) Line 8, the figure ``5.16'' is corrected to read ``5.17''.
(b) Line 12, the figure ``0.9484'' is corrected to read ``0.9483''.
(2) Second full paragraph--
(a) Lines 5 and 6, the phrase ``outlier adjustment of 0.9484 is a
1.04 percent change'' is corrected to read ``outlier adjustment of
0.9483 is a 1.03 percent change''.
(b) Line 10, the figures ``1.0104 (0.9484/0.9386)'' are corrected
to read ``1.0103(0.9483/0.9386)''.
(c) Line 12, the figure ``1.04'' is corrected to read ``1.03''.
(3) Fourth full paragraph--
(a) Line 13, the figure ``0.9994'' is corrected to read ``0.9995''.
(b) Line 16, the figure ``0.9844'' is corrected to read
``0.99845''.
b. Second column--
(1). First partial paragraph, line 8, the figure ``0.9837'' is
corrected to read ``0.9838''.
(2). Third full paragraph--
(a) Line 1, the figure ``0.9986'' is corrected to read ``0.9987''.
(b) Line 3, the figure ``0.9994'' is corrected to read ``0.9995''.
c. Third column--
(1). First full paragraph--
(a) Line 4, the figure ``1.61'' is corrected to read ``1.60''.
(b) Line 15, the figure ``$453.97'' is corrected to read
``$453.95''.
[[Page 46145]]
(c) Second bulleted paragraph, last line, the figure ``0.9986'' is
corrected to read ``0.9987''.
(d) Third bulleted paragraph, last line, the figure ``0.9484'' is
corrected to read ``0.9483''.
(e) Last paragraph--
(1) Line 15, the figure ``0.14'' is corrected to read ``0.13''.
(2) Line 18, the figure ``1.04'' is corrected to read ``1.03''.
7. On page 38535--
a. Top of page--
(1) Second column, first partial paragraph, last line, the figure
``1.61'' is corrected to read ``1.60''.
(2) The table titled ``COMPARISON OF FACTORS AND ADJUSTMENTS: FY
2017 CAPITAL FEDERAL RATE AND FY 2018 CAPITAL FEDERAL RATE'' is
corrected to read as follows:
Comparison of Factors and Adjustments: FY 2017 Capital Federal Rate and FY 2018 Capital Federal Rate
----------------------------------------------------------------------------------------------------------------
Percent change
FY 2017 FY 2018 Change \3\
----------------------------------------------------------------------------------------------------------------
Update Factor \1\............................... 1.0090 1.0130 1.0130 1.30
GAF/DRG Adjustment Factor \1\................... 0.9990 0.9987 0.9987 -0.13
Outlier Adjustment Factor \2\................... 0.9386 0.9483 1.0103 1.03
Removal of One-Time 2-Midnight Policy Adjustment 1.0060 1/1.006 0.9940 -0.60
Factor.........................................
Capital Federal Rate............................ $446.79 $453.95 1.0160 1.60
----------------------------------------------------------------------------------------------------------------
\1\ The update factor and the GAF/DRG budget neutrality adjustment factors are built permanently into the
capital Federal rates. Thus, for example, the incremental change from FY 2017 to FY 2018 resulting from the
application of the 0.9987 GAF/DRG budget neutrality adjustment factor for FY 2018 is a net change of 0.9987
(or -0.13 percent).
\2\ The outlier reduction factor is not built permanently into the capital Federal rate; that is, the factor is
not applied cumulatively in determining the capital Federal rate. Thus, for example, the net change resulting
from the application of the FY 2018 outlier adjustment factor is 0.9483/0.9386 or 1.0103 (or 1.03 percent).
\3\ Percent change may not sum due to rounding.
b. Middle of page, the table titled ``COMPARISON OF FACTORS AND
ADJUSTMENTS: PROPOSED FY 2018 CAPITAL FEDERAL RATE AND FINAL FY 2018
CAPITAL FEDERAL RATE'' is corrected to read as follows:
Comparison of Factors and Adjustments: Proposed FY 2018 Capital Federal Rate and Final FY 2018 Capital Federal
Rate
----------------------------------------------------------------------------------------------------------------
Proposed FY
2018 Final FY 2018 Change Percent change
----------------------------------------------------------------------------------------------------------------
Update Factor \1\............................... 1.0120 1.0130 1.0010 1.10
GAF/DRG Adjustment Factor \1\................... 0.9992 0.9987 0.9985 -0.05
Outlier Adjustment Factor \2\................... 0.9434 0.9483 1.0052 0.52
Removal of One-Time 2-Midnight Policy Adjustment 1/1.006 1/1.006 0.0000 0.00
Factor.........................................
Capital Federal Rate............................ $451.37 $453.95 1.0057 0.57
----------------------------------------------------------------------------------------------------------------
c. Lower third of the page, first column, second full paragraph,
last line, the figure, ``$26,601'' is corrected to read ``$26,537''.
8. On page 38537--
a. First column last paragraph--
(1) Line 22, the figure ``1.0006434'' is corrected to read
``1.0002704''.
(2) Line 35, the figure ``$41,430.56'' is corrected to read
``$41,415.11''.
(3) Line 36, the figure ``1.0006434'' is corrected to read
``1.0002704''.
b. Second column, first partial paragraph--
(1) Line 5, the figure ``40,610.16'' is corrected to read
``$40,595.02''.
(2) Line 6, the figure ``1.0006434'' is corrected to read
``1.0002704''.
9. On page 38539, second column, fourth full paragraph--
a. Line 6, the figure ``1.0006434'' is corrected to read
``1.0002704''.
b. Line 11, the figure ``1.0006434'' is corrected to read
``1.0002704''.
10. On page 38544--
a. First column--
(1) First partial paragraph--
(a) Line 6, the figure ``27,382'' is corrected to read ``27,381''.
(b) Last line, the figure ``27,382'' is corrected to read
``27,381''.
(2) First full paragraph--
(a) Line 4, the figure ``27,382'' is corrected to read ``27,381''.
(b) Line 27, the figure ``27,240'' is corrected to read ``27,239''.
(3) Second column, first partial paragraph, line 25, the figure
``27,382'' is corrected to read ``27,381''.
10. On page 38545--
a. Second column, second full paragraph--
(1) Line 14, the figure, ``$26,601'' is corrected to read
``$26,537''.
(2) Last line, the figure, ``$26,601'' is corrected to read
``$26,537''.
b. Third column, second full paragraph, line 3, the figure,
``$26,601'' is corrected to read ``$26,537''.
11. On page 38546, third column--
a. Second full paragraph, line 27, the figure ``$41,430.56'' is
corrected to read ``$41,415.11''.
b. Last paragraph, line 7, the figure ``1.0547'' is corrected to
read ``1.0553''.
12. On page 38547, top of the page--
a. Second column, partial paragraph--
(1) Line 2, the figure ``$41,430.56'' is corrected to read
``$41,415.11''.
(2) Line 3, the figure ``1.0547'' is corrected to read ``1.0553''.
b. Third column, partial paragraph, line 5, the figure
``$41,449.71'' is corrected to read ``$41,450.13''.
c. Untitled table, the table is corrected to read as follows:
------------------------------------------------------------------------
------------------------------------------------------------------------
LTCH PPS Standard Federal Payment Rate.................. $41,415.11
Labor-Related Share..................................... x 0.662
Labor-Related Portion of the LTCH PPS Standard Federal = $27,416.80
Payment Rate...........................................
Wage Index (CBSA 16974)................................. x 1.0553
[[Page 46146]]
Wage-Adjusted Labor Share of LTCH PPS Standard Federal = $28,932.95
Payment Rate...........................................
Nonlabor-Related Portion of the LTCH PPS Standard + $13,998.31
Federal Payment Rate ($41,415.11 x 0.338)..............
Adjusted LTCH PPS Standard Federal Payment Amount....... = $42,931.26
MS-LTC-DRG 189 Relative Weight.......................... x 0.9655
Total Adjusted LTCH PPS Standard Federal Payment Rate... = $41,450.13
------------------------------------------------------------------------
13. On page 38548--
a. Middle of the page,
(1) The table titled ``TABLE 1A.--NATIONAL ADJUSTED OPERATING
STANDARDIZED AMOUNTS, LABOR/NONLABOR [(68.3 PERCENT LABOR SHARE/31.7
PERCENT NONLABOR SHARE IF WAGE INDEX IS GREATER THAN 1)--FY 2018''] is
corrected to read as follows:
Table 1A--National Adjusted Operating Standardized Amounts, Labor/Nonlabor
[(68.3 percent labor share/31.7 percent nonlabor share if wage index is greater than 1)--FY 2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hospital submitted quality data and is Hospital submitted quality data and Hospital did NOT submit quality data Hospital did NOT submit quality data
a meaningful EHR user (update = 1.35 is not a meaningful EHR user (update and is a meaningful EHR user (update and is NOT a meaningful EHR user
percent) = -0.675 percent) = 0.675 percent) (update = -1.35 percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Labor Nonlabor Labor Nonlabor Labor Nonlabor Labor Nonlabor
--------------------------------------------------------------------------------------------------------------------------------------------------------
$3,806.04 $1,766.49 $3,729.99 $1,731.20 $3,780.69 $1,754.73 $3,704.65 $1,719.43
--------------------------------------------------------------------------------------------------------------------------------------------------------
(2) The table titled ``TABLE 1B.--NATIONAL ADJUSTED OPERATING
STANDARDIZED AMOUNTS, LABOR/NONLABOR [(62 PERCENT LABOR SHARE/38
PERCENT NONLABOR SHARE IF WAGE INDEX IS LESS THAN OR EQUAL TO 1)--FY
2018]'' is corrected to read as follows:
Table 1B--National Adjusted Operating Standardized Amounts, Labor/Nonlabor
[(62 percent labor share/38 percent nonlabor share if wage index is less than or equal to 1)--FY 2018]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hospital submitted quality data and is Hospital submitted quality data and Hospital did NOT submit quality data Hospital did NOT submit quality data
a meaningful EHR user (update = 1.35 is not a meaningful EHR user (update and is a meaningful EHR user (update and is NOT a meaningful EHR user
percent) = -0.675 percent) = 0.675 percent) (update = -1.35 percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Labor Nonlabor Labor Nonlabor Labor Nonlabor Labor Nonlabor
--------------------------------------------------------------------------------------------------------------------------------------------------------
$3,454.97 $2,117.56 $3,385.94 $2,075.25 $3,431.96 $2,103.46 $3,362.93 $2,061.15
--------------------------------------------------------------------------------------------------------------------------------------------------------
(3) The table titled ``TABLE 1C.--ADJUSTED OPERATING STANDARDIZED
AMOUNTS FOR HOSPITALS IN PUERTO RICO, LABOR/NONLABOR [(NATIONAL: 62
PERCENT LABOR SHARE/38 PERCENT NONLABOR SHARE BECAUSE WAGE INDEX IS
LESS THAN OR EQUAL TO 1);--FY 2018]'' is corrected to read as follows:
Table 1C--Adjusted Operating Standardized Amounts For Hospitals In Puerto Rico, Labor/Nonlabor
[(National: 62 percent labor share/38 percent nonlabor share because wage index is less than or equal to 1);--FY
2018]
----------------------------------------------------------------------------------------------------------------
Rates if wage index is greater than 1 Rates if wage index is less than
-------------------------------------------- or equal to 1
Standardized amount ---------------------------------
Labor Nonlabor Labor Nonlabor
----------------------------------------------------------------------------------------------------------------
National \1\...................... Not Applicable...... Not Applicable...... $3,454.97 $2,117.56
----------------------------------------------------------------------------------------------------------------
\1\ For FY 2018, there are no CBSAs in Puerto Rico with a national wage index greater than 1.
b. Bottom of the page--
(1) The table titled ``TABLE 1D.--CAPITAL STANDARD FEDERAL PAYMENT
RATE [FY 2018]'' is corrected to read as follows:
Table 1D--Capital Standard Federal Payment Rate
[FY 2018]
------------------------------------------------------------------------
Rate
------------------------------------------------------------------------
National............................................... $453.95
------------------------------------------------------------------------
(2) The table titled ``TABLE 1E.--LTCH PPS STANDARD FEDERAL PAYMENT
RATE [FY 2018]'' is corrected to read as follows:
[[Page 46147]]
Table 1E--LTCH PPS Standard Federal Payment Rate
[FY 2018]
------------------------------------------------------------------------
Reduced update
Full update (1 * (-1.0
percent) percent)
------------------------------------------------------------------------
Standard Federal Payment Rate......... $41,415.11 $40,595.02
------------------------------------------------------------------------
D. Corrections of Errors in the Appendices
1. On pages 38552 through 38554, the table and table notes for the
table titled ``TABLE I.--IMPACT ANALYSIS OF CHANGES TO THE IPPS FOR
OPERATING COSTS FOR FY 2018'' are corrected to read as follows:
BILLING CODE 4120-01-P
[[Page 46148]]
[GRAPHIC] [TIFF OMITTED] TR04OC17.000
[[Page 46149]]
[GRAPHIC] [TIFF OMITTED] TR04OC17.001
[[Page 46150]]
[GRAPHIC] [TIFF OMITTED] TR04OC17.002
[[Page 46151]]
[GRAPHIC] [TIFF OMITTED] TR04OC17.003
BILLING CODE 4120-01-C
[[Page 46152]]
2. On page 38555,
a. Second column, second full paragraph--
(1) Line 6, the figure ``0.997432'' is corrected to read
``0.997439''.
(2) Line 14, the figure ``0.2'' is corrected to read ``0.1''.
b. Third column, first full paragraph, line 26, the figure
``1.001148'' is corrected to read ``1.000882''.
3. On page 38556, lower half of the page--
a. First column, third full paragraph, line 6, the figure
``0.988008'' is corrected to read ``0.987985''.
b. Third column--
(1) First full paragraph, line 8, the figure ``0.993348'' is
corrected to read ``0.993324''.
(2) Last paragraph, line 5, the figure ``0.993348'' is corrected to
read ``0.993324''.
4. On page 38557, top of the page, first column, first partial
paragraph, line 20, the figure ``$44 million'' is corrected to read
``$43 million''.
5. On pages 38557 and 38558, the table titled ``FY 2018 IPPS
ESTIMATED PAYMENTS DUE TO RURAL AND IMPUTED FLOOR WITH NATIONAL BUDGET
NEUTRALITY'' is corrected to read as follows:
FY 2018 IPPS Estimated Payments Due to Rural and Imputed Floor With National Budget Neutrality
----------------------------------------------------------------------------------------------------------------
Percent change
in payments
Number of due to
hospitals that application of
State Number of will receive rural floor Difference (in
hospitals the rural or an