Pursuant to a legislative requirement, GAO reviewed the Health Care Financing Administration's (HCFA) new rule on hospital inpatient payment systems and rates. GAO noted that: (1) the final rule revises the Medicare hospital inpatient prospective payment systems for operating costs and capital-related costs to implement changes arising from HCFA's continuing experience with the systems; and (2) HCFA complied with applicable requirements in promulgating the rule.