Medicare Program--Changes to the Hospital Inpatient Prospective Payment Systems and Fiscal Year 1997 Rates

OGC-96-41: Published: Sep 13, 1996. Publicly Released: Sep 13, 1996.


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Pursuant to a legislative requirement, GAO reviewed the Health Care Financing Administration's (HCFA) new rule on changes to the Medicare Program's hospital inpatient prospective payment systems and fiscal year 1997 rates. GAO found that: (1) the rule would adjust the classifications and weighting factors for diagnosis related groups, update the wage index associated with hospital operating costs, and make certain clarifications regarding the calculation of hospital payments excluded from the prospective payment systems; and (2) HCFA complied with applicable requirements in promulgating the rule.

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