Department of Health and Human Services, Centers for Medicare and Medicaid Services: Medicare Program; Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 2007 Rates; Fiscal Year 2007 Occupational Mix Adjustment to Wage Index; Health Care Infrastructure Improvement Program; and Selection Criteria of Loan Program for Qualifying Hospitals Engaged in Cancer-Related Health Care and Forgiveness of Indebtedness

GAO reviewed the Centers for Medicare and Medicaid Services (CMS) new rule on the Hospital Inpatient Prospective Payment System and Fiscal Year 2007 rates. GAO found that the rule revises the Medicare hospital inpatient prospective payment systems for operating and capital-related costs to implement changes arising from CMS's continuing experience with these systems and to implement a number of changes made by the Deficit Reduction Act of 2005. Among other changes, the final rule finalizes policy documents relating to the implementation of the Health Care Infrastructure Improvement Program, a hospital loan program for cancer research. GAO also found that, with the exception of the delay in the rule's effective date, CMS complied with applicable requirements in promulgating the rule.