HOSPITALS: Court Order Drives 2007 Inpatient-Hospital Payment Rates

Why This Topic Matters

Hospitals and coders who work with Medicare inpatient reimbursement need to understand how CMS finalized FY 2007 IPPS rates and how wage index updates can affect payment calculations and reclassification choices. The article also highlights a deadline-related administrative process that can influence hospital payment classification for the fiscal year.

Article Sections

1. CMS finalizes FY 2007 IPPS rates after court-ordered survey data collection

   This section covers the background for the revised inpatient payment rates and the CMS process used to finalize the annual rule. It focuses on the general effect of occupational mix data on IPPS calculations.

2. Effects on wage index and related IPPS payment components

   This section summarizes the broad impact of the revised wage indices on inpatient payment elements and compares the tentative and final rate updates. It also notes the general size of the change described by CMS.

3. Geographic reclassification options for hospitals

   This section discusses CMS guidance on hospital flexibility to use another area's wage index and the handling of reclassification choices. It also addresses the administrative timing for hospitals that want CMS to revisit prior determinations.