RTI Report: Refining Cost to Charge Ratios for Calculating APC and DRG Relative Payment Weights

Title

RTI Report: Refining Cost to Charge Ratios for Calculating APC and DRG Relative Payment Weights

In the FY 2009 IPPS proposed rule, issued on April 14, 2008, we stated that we had contracted with RAND to evaluate how the relative weights would change if we were to adopt regression-based CCRs to address charge compression while simultaneously adopting an HSRV methodology using fully phased-in MS-DRGs. Because RAND's analysis was not complete in time for the IPPS proposed rule, we were not able to include a discussion of the report. However, we indicated that we would post the link to the RAND report (http://www.rand.org/pubs/working_papers/WR560/) on our website (www.cms.hhs.gov/AcuteInpatientPPS/FFD/) and we would welcome public comment on the report. Also in the FY 2009 IPPS proposed rule, we stated that RTI had been contracted to further analyze charge compression including a reassessment of the regression-based CCR models using both outpatient and inpatient charge data. However, during the development of the IPPS proposed rule, RTI's findings were not available. The IPPS-related chapters of this report are now available, and we posted the link to the RTI (http://www.rti.org/reports/cms/) report for public comment. Comments on these reports will be accepted for 60 days through June 19, 2008. CMS will respond to comments in a final rule to be issued on or before August 1, 2008.

Posted

Jun 16, 2008

Comment period

Jun 16, 2008 – Jun 20, 2008

Agency

Centers for Medicare & Medicaid Services (CMS)

Topics

• Medicare & Medicaid

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