00-25547. Medicare Program; Hospice Wage Index  

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    AGENCY:

    Health Care Financing Administration (HCFA), HHS.

    ACTION:

    Notice.

    SUMMARY:

    This notice announces the annual update to the hospice wage index as required by statute. This update is effective October 1, 2000 through September 30, 2001. The wage index is used to reflect local differences in wage levels. The hospice wage index methodology and values are based on recommendations of a negotiated rulemaking advisory committee and were originally published in the Federal Register on August 8, 1997.

    EFFECTIVE DATE:

    This notice is effective on October 1, 2000.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Carol Blackford, (410) 786-5909.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    I. Background

    A. Statute and Regulations

    Hospice Care is an approach to treatment that recognizes that the impending death of an individual warrants a change in the focus from curative care to palliative care (relief of pain and other uncomfortable symptoms). The goal of hospice care is to help terminally ill individuals continue life with minimal disruption to normal activities while remaining primarily in the home environment. A hospice uses an interdisciplinary approach to deliver medical, social, psychological, emotional, and spiritual services through use of a broad spectrum of professional and other caregivers, with the goal of making the individual as physically and emotionally comfortable as possible. Counseling and respite services are available to the family of the hospice patient. Hospice programs consider both the patient and the family as a unit of care.

    Section 1861(dd) of the Social Security Act (the Act) provides for coverage of hospice care for terminally ill Medicare beneficiaries who elect to receive care from a participating hospice. The statutory authority for payment to hospices participating in the Medicare program is contained in section 1814(i) of the Act.

    Our existing regulations under 42 CFR part 418 (issued on December 16, 1983, effective for hospice services furnished on or after November 1, 1983) establish eligibility requirements and payment standards and procedures, define covered services, and delineate the conditions a hospice must meet to be approved for participation in the Medicare program. Subpart G of Part 418 provides for payment to hospices based on one of four prospectively determined rates for each day in which a qualified Medicare beneficiary is under the care of a hospice. The four rate categories are routine home care, continuous home care, inpatient respite care, and general inpatient care. Payment rates are established for each category.

    The regulations at § 418.306(c), which require the rates to be adjusted by a wage index, were revised in the August 8, 1997 final rule (62 FR 42860). This rule implemented a new methodology for calculating the hospice wage index based on the recommendations of a negotiated rulemaking committee. The committee reached consensus on the methodology. We included the resulting committee statement, describing that consensus, as an appendix to the August 8, 1997 final rule (62 FR 42883). The provisions of the final hospice wage index rule are as follows:

    • The revised hospice wage index will be calculated using the most current available hospital wage data.
    • The revised hospice wage index was phased in over a 3-year transition period. For the first year of the transition period, October 1, 1997 through September 30, 1998, a blended index was calculated by adding two-thirds of the 1983 index value for an area to one-third of the revised wage index value for that area. During the second year of the transition period, October 1, 1998 through September 30, 1999, the calculation was similar, except that the blend was one-third of the 1983 index value and two-thirds of the revised wage index value for that area. We fully implemented the revised wage index during the third transition period, October 1, 1999 through September 30, 2000.
    • All hospice wage index values of 0.8 or greater are subject to a budget-neutrality adjustment to ensure that we do not pay more in the aggregate than we would have paid under the original wage index. The budget-neutrality adjustment is calculated by multiplying the hospice wage index for a given area by the budget-neutrality adjustment factor. The budget-neutrality adjustment is to be applied annually, both during and after the transition period.
    • All hospice wage index values below 0.8 receive the greater of the following adjustments: the wage index floor, a 15-percent increase, subject to a maximum wage index value of 0.8; or, the budget-neutrality adjustment.
    • The wage index is to be updated annually, in the Federal Register, based on the most current available hospital wage data. These data will include any changes to the definitions of Metropolitan Statistical Areas (MSA).

    Section 4441(a) of the Balanced Budget Act of 1997 (BBA) amended section 1814(i)(1)(C)(ii) of the Act to establish updates to hospice rates for fiscal years (FYs) 1998 through 2002. Hospice rates were to be updated by a factor equal to the market basket index, minus 1 percentage point. However, section 131(a) of the Balanced Budget Refinement Act of 1999 (BBRA) changed the payment rates for FYs 2001 and 2002 by increasing the FY 2001 rate by 0.5 percent and the FY 2002 rate by 0.75 percent. Section 131(b) of the BBRA states that any additional payments made under section 131(a) of the BBRA shall not be included in updating the hospice rates after those 2 years.

    B. Update to the Hospice Wage Index

    This annual update is effective October 1, 2000 through September 30, 2001. In accordance with the agreement signed by the Health Care Financing Administration (HCFA) and all other members of the Hospice Wage Index Negotiated Rulemaking Committee, we are using the most current HCFA hospital data available, including any changes to the definitions of MSAs. The FY 2000 hospital wage index was the most current hospital wage data available when the FY 2001 wage index values were calculated. We used the pre-reclassified and pre-floor hospital area wage index data.

    All wage index values are adjusted by a budget-neutrality factor of 1.065425 and are subject to the wage index floor adjustment, if applicable. We have completed all of the calculations described above and included them in the wage index values reflected in both Tables A and B below. A detailed description of the method used to compute the hospice wage index is contained in both the September 4, 1996 proposed rule (61 FR 46579) and the August 8, 1997 final rule (62 FR 42860).

    After the publication of the FY 2000 hospice wage index updates, we received a number of questions about the methodology used to calculate the hospice wage indices. We would like to take this opportunity to further explain the methodology used in determining the hospice wage indices. Start Printed Page 60073

    1. Metropolitan Statistical Areas

    As explained in the September 4, 1996 hospice wage index proposed rule, each hospice=s labor market area would be established by the MSA definitions issued by the Office of Management and Budget (OMB) on December 28, 1992 based on the 1990 census, and updated periodically by OMB. Any changes to the MSA definitions would be effective annually and announced in the final rule updating the hospice wage index.

    2. MSA Wage Index Values Lower Than Rural Values

    As explained above, any area not included in an MSA is considered to be nonurban and receives the statewide rural rate. We are aware that in the past, a number of MSAs have had wage index values that were lower than their rural statewide value. This difference is due to variations in local wage data as compared to national wage data. The hospice wage index is computed by dividing the hourly wage rate for an MSA or nonurban area by a national hourly wage rate. Nonurban areas could receive a higher wage index value than urban areas in the same state if the hourly wage rate in the nonurban area increased at a greater rate.

    C. Tables

    Table A.—Hospice Wage Index for Urban Areas

    MSA code No.Urban area (constituent counties or county equivalents) 1Wage index 2
    0040Abilene, TX0.8715
    Taylor, TX
    0060Aguadilla, PR0.4386
    Aguada, PR
    Aguadilla, PR
    Moca, PR
    0080Akron, OH1.0829
    Portage, OH
    Summit, OH
    0120Albany, GA1.1052
    Dougherty, GA
    Lee, GA
    0160Albany-Schenectady-Troy, NY0.9328
    Albany, NY
    Montgomery, NY
    Rensselaer, NY
    Saratoga, NY
    Schenectady, NY
    Schoharie, NY
    0200Albuquerque, NM0.9056
    Bernalillo, NM
    Sandoval, NM
    Valencia, NM
    0220Alexandria, LA0.8385
    Rapides, LA
    0240Allentown-Bethlehem-Easton, PA1.0897
    Carbon, PA
    Lehigh, PA
    Northampton, PA
    0280Altoona, PA0.9954
    Blair, PA
    0320Amarillo, TX0.8929
    Potter, TX
    Randall, TX
    0380Anchorage, AK1.3701
    Anchorage, AK
    0440Ann Arbor, MI1.2235
    Lenawee, MI
    Livingston, MI
    Washtenaw, MI
    0450Anniston, AL0.9017
    Calhoun, AL
    0460Appleton-Oshkosh-Neenah, WI0.9496
    Calumet, WI
    Outagamie, WI
    Winnebago, WI
    0470Arecibo, PR0.5537
    Arecibo, PR
    Camuy, PR
    Hatillo, PR
    0480Asheville, NC0.9466
    Buncombe, NC
    Madison, NC
    0500Athens, GA1.0340
    Clarke, GA
    Madison, GA
    Oconee, GA
    0520Atlanta, GA1.0709
    Barrow, GA
    Bartow, GA
    Carroll, GA
    Cherokee, GA
    Clayton, GA
    Cobb, GA
    Coweta, GA
    DeKalb, GA
    Douglas, GA
    Fayette, GA
    Forsyth, GA
    Fulton, GA
    Gwinnett, GA
    Henry, GA
    Newton, GA
    Paulding, GA
    Pickens, GA
    Rockdale, GA
    Spalding, GA
    Walton, GA
    0560Atlantic-Cape May, NJ1.2051
    Atlantic, NJ
    Cape May, NJ
    0580Aubrn-Opelika, AL0.8256
    Lee, AL
    0600Augusta-Aiken, GA-SC0.9603
    Columbia, GA
    McDuffie, GA
    Richmond, GA
    Aiken, SC
    Edgefield, SC
    0640Austin-San Marcos, TX0.9676
    Bastrop, TX
    Caldwell, TX
    Hays, TX
    Travis, TX
    Williamson, TX
    0680Bakersfield, CA1.0248
    Kern, CA
    0720Baltimore, MD1.0539
    Anne Arundel, MD
    Baltimore, MD
    Baltimore City, MD
    Carroll, MD
    Harford, MD
    Howard, MD
    Queen Anne's, MD
    0733Bangor, ME1.0239
    Penobscot, ME
    0743Barnstable-Yarmouth, MA1.4173
    Barnstable, MA
    0760Baton Rouge, LA0.9278
    Ascension, LA
    East Baton Rouge, LA
    Livingston, LA
    West Baton Rouge, LA
    0840Beaumont-Port Arthur, TX0.9129
    Hardin, TX
    Jefferson, TX
    Orange, TX
    0860Bellingham, WA1.2141
    Whatcom, WA
    0870Benton Harbor, MI0.9011
    Berrien, MI
    0875Bergen-Passaic, NJ1.2816
    Bergen, NJ
    Passaic, NJ
    0880Billings, MT1.0696
    Yellowstone, MT
    0920Biloxi-Gulfport-Pascagoula, MS0.8383
    Hancock, MS
    Harrison, MS
    Jackson, MS
    0960Binghamton, NY0.9324
    Broome, NY
    Tioga, NY
    1000Birmingham, AL0.9584
    Blount, AL
    Jefferson, AL
    St. Clair, AL
    Shelby, AL
    1010Bismarck, ND0.8267
     Burleigh, ND
    Morton, ND
    1020Bloomington, IN0.9155
    Monroe, IN
    1040Bloomington-Normal, IL0.9582
    McLean, IL
    1080Boise City, ID0.9654
    Ada, ID
    Canyon, ID
    1123Boston-Worcester-Lawrence-Lowell-Brockton, MA-NH1.2102
    Bristol, MA
    Essex, MA
    Middlesex, MA
    Norfolk, MA
    Plymouth, MA
    Suffolk, MA
    Worcester, MA
    Hillsborough, NH
    Merrimack, NH
    Rockingham, NH
    Start Printed Page 60074
    Strafford, NH
    1125Boulder-Longmont, CO1.0596
    Boulder, CO
    1145Brazoria, TX0.9074
    Brazoria, TX
    1150Bremerton, WA1.1733
    Kitsap, WA
    1240Brownsville-Harlingen-San Benito, TX0.9816
    Cameron, TX
    1260Bryan-College Station, TX0.9057
    Brazos, TX
    1280Buffalo-Niagara Falls, NY1.0233
    Erie, NY
    Niagara, NY
    1303Burlington, VT1.1250
    Chittenden, VT
    Franklin, VT
    Grand Isle, VT
    1310Caguas, PR0.5245
    Caguas, PR
    Cayey, PR
    Cidra, PR
    Gurabo, PR
    San Lorenzo, PR
    1320Canton-Massillon, OH0.9346
    Carroll, OH
    Stark, OH
    1350Casper, WY0.9802
    Natrona, WY
    1360Cedar Rapids, IA0.9609
    Linn, IA
    1400Champaign-Urbana, IL0.9764
    Champaign, IL
    1440Charleston-North Charleston, SC0.9577
    Berkeley, SC
    Charleston, SC
    Dorchester, SC
    1480Charleston, WV0.9691
    Kanawha, WV
    Putnam, WV
    1520Charlotte-Gastonia-Rock Hill, NC-SC1.0051
    Cabarrus, NC
    Gaston, NC
    Lincoln, NC
    Mecklenburg, NC
    Rowan, NC
    Stanly, NC
    Union, NC
    York, SC
    1540Charlottesville, VA1.1267
    Albemarle, VA
    Charlottesville City, VA
    Fluvanna, VA
    Greene, VA
    1560Chattanooga, TN-GA1.0369
    Catoosa, GA
    Dade, GA
    Walker, GA
    Hamilton, TN
    Marion, TN
    1580Cheyenne, WY0.8711
    Laramie, WY
    1600Chicago, IL1.1585
    Cook, IL
    DeKalb, IL
    Du Page, IL
    Grundy, IL
    Kane, IL
    Kendall, IL
    Lake, IL
    McHenry, IL
    Will, IL
    1620Chico-Paradise, CA1.1071
    Butte, CA
    1640Cincinnati, OH-KY-IN1.0035
    Brown, OH
    Clermont, OH
    Hamilton, OH
    Warren, OH
    Boone, KY
    Campbell, KY
    Gallatin, KY
    Grant, KY
    Kenton, KY
    Pendleton, KY
    Dearborn, IN
    Ohio, IN
    1660Clarksville-Hopkinsville, TN-KY0.8619
    Christian, KY
    Montgomery, TN
    1680Cleveland-Lorain-Elyria, OH1.0323
    Ashtabula, OH
    Cuyahoga, OH
    Geauga, OH
    Lake, OH
    Lorain, OH
    Medina, OH
    1720Colorado Springs, CO0.9821
    El Paso, CO
    1740Columbia, MO0.9488
    Boone, MO
    1760Columbia, SC0.9970
    Lexington, SC
    Richland, SC
    1800Columbus, GA-AL0.9068
    Chattahochee, GA
    Harris, GA
    Muscogee, GA
    Russell, AL
    1840Columbus, OH1.0556
    Delaware, OH
    Fairfield, OH
    Franklin, OH
    Licking, OH
    Madison, OH
    Pickaway, OH
    1880Corpus Christi, TX0.9271
    Nueces, TX
    San Patricio, TX
    1890Corvallis, Oregon1.1813
    Benton, OR
    1900Cumberland, MD-WV0.9378
    Allegany, MD
    Mineral, WV
    1920Dallas, TX1.0236
    Collin, TX
    Dallas, TX
    Denton, TX
    Ellis, TX
    Henderson, TX
    Hunt, TX
    Kaufman, TX
    Rockwall, TX
    1950Danville, VA0.9277
    Danville City, VA
    Pittsylvania, VA
    1960Davenport-Moline-Rock Island, IA-IL1.0080
    Scott, IA
    Henry, IL
    Rock Island, IL
    2000Dayton-Springfield, OH0.9576
    Clark, OH
    Greene, OH
    Miami, OH
    Montgomery, OH
    2020Daytona Beach, FL0.9248
    Flagler, FL
    Volusia, FL
    2030Decatur, AL0.9248
    Lawrence, AL
    Morgan, AL
    2040Decatur, IL0.8867
    Macon, IL
    2080Denver, CO1.0857
    Adams, CO
    Arapahoe, CO
    Denver, CO
    Douglas, CO
    Jefferson, CO
    2120Des Moines, IA0.9328
    Dallas, IA
    Polk, IA
    Warren, IA
    2160Detroit, MI1.1104
    Lapeer, MI
    Macomb, MI
    Monroe, MI
    Oakland, MI
    St. Clair, MI
    Wayne, MI
    2180Dothan, AL0.8309
    Dale, AL
    Houston, AL
    2190Dover, DE0.9947
    Kent, DE
    2200Dubuque, IA0.9079
    Dubuque, IA
    2240Duluth-Superior, MN-WI1.0831
    St. Louis, MN
    Douglas, WI
    2281Dutchess County, NY1.1243
    Dutchess, NY
    2290Eau Claire, WI0.9544
    Chippewa, WI
    Eau Claire, WI
    2320El Paso, TX0.9533
    El Paso, TX
    2330Elkhart-Goshen, IN0.9994
    Elkhart, IN
    2335Elmira, NY0.9092
    Chemung, NY
    2340Enid, OK0.8474
    Garfield, OK
    2360Erie, PA0.9614
    Erie, PA
    2400Eugene-Springfield, OR1.1298
    Lane, OR
    Start Printed Page 60075
    2440Evansville-Henderson, IN-KY0.8847
    Posey, IN
    Vanderburgh, IN
    Warrick, IN
    Henderson, KY
    2520Fargo-Moorhead, ND-MN0.9185
    Clay, MN
    Cass, ND
    2560Fayetteville, NC0.9051
    Cumberland, NC
    2580Fayetteville-Springdale-Rogers, AR0.8283
    Benton, AR
    Washington, AR
    2620Flagstaff, AZ-UT1.1026
    Coconino, AZ
    Kane, UT
    2640Flint, MI1.1742
    Genesee, MI
    2650Florence, AL0.8447
    Colbert, AL
    Lauderdale, AL
    2655Florence, SC0.9183
    Florence, SC
    2670Fort Collins-Loveland, CO1.0977
    Larimer, CO
    2680Ft. Lauderdale, FL1.0839
    Broward, FL
    2700Fort Myers-Cape Coral, FL0.9537
    Lee, FL
    2710Fort Pierce-Port St. Lucie, FL1.0653
    Martin, FL
    St. Lucie, FL
    2720Fort Smith, AR-OK0.8357
    Crawford, AR
    Sebastian, AR
    Sequoyah, OK
    2750Fort Walton Beach, FL0.9284
    Okaloosa, FL
    2760Fort Wayne, IN0.9692
    Adams, IN
    Allen, IN
    De Kalb, IN
    Huntington, IN
    Wells, IN
    Whitley, IN
    2800Fort Worth-Arlington, TX1.0480
    Hood, TX
    Johnson, TX
    Parker, TX
    Tarrant, TX
    2840Fresno, CA1.0935
    Fresno, CA
    Madera, CA
    2880Gadsden, AL0.9258
    Etowah, AL
    2900Gainesville, FL1.0764
    Alachua, FL
    2920Galveston-Texas City, TX1.0370
    Galveston, TX
    2960Gary, IN1.0005
    Lake, IN
    Porter, IN
    2975Glens Falls, NY0.9170
    Warren, NY
    Washington, NY
    2980Goldsboro, NC0.8879
    Wayne, NC
    2985Grand Forks, ND-MN0.9693
    Grand Forks, ND
    Polk, MN
    2995Grand Junction, CO0.9790
    Mesa, CO
    3000Grand Rapids-Muskegon-Holland, MI1.0799
    Allegan, MI
    Kent, MI
    Muskegon, MI
    Ottawa, MI
    3040Great Falls, MT1.1144
    Cascade, MT
    3060Greeley, CO1.0359
    Weld, CO
    3080Green Bay, WI0.9731
    Brown, WI
    3120Greensboro-Winston-Salem-High Point, NC0.9629
    Alamance, NC
    Davidson, NC
    Davie, NC
    Forsyth, NC
    Guilford, NC
    Randolph, NC
    Stokes, NC
    Yadkin, NC
    3150Greenville, NC1.0123
    Pitt, NC
    3160Greenville-Spartanburg-Anderson, SC0.9790
    Anderson, SC
    Cherokee, SC
    Greenville, SC
    Pickens, SC
    Spartanburg, SC
    3180Hagerstown, MD0.9422
    Washington, MD
    3200Hamilton-Middletown, OH0.9532
    Butler, OH
    3240Harrisburg-Lebanon-Carlisle, PA1.0567
    Cumberland, PA
    Dauphin, PA
    Lebanon, PA
    Perry, PA
    3283Hartford, CT1.2483
    Hartford, CT
    Litchfield, CT
    Middlesex, CT
    Tolland, CT
    3285Hattiesburg, MS0.8134
    Forrest, MS
    Lamar, MS
    3290Hickory-Morganton-Lenoir, NC0.9709
    Alexander, NC
    Burke, NC
    Caldwell, NC
    Catawba, NC
    3320Honolulu, HI1.2228
    Honolulu, HI
    3350Houma, LA0.8350
    Lafourche, LA
    Terrebonne, LA
    3360Houston, TX1.0002
    Chambers, TX
    Fort Bend, TX
    Harris, TX
    Liberty, TX
    Montgomery, TX
    Waller, TX
    3400Huntington-Ashland, WV-KY-OH1.0396
    Boyd, KY
    Carter, KY
    Greenup, KY
    Lawrence, OH
    Cabell, WV
    Wayne, WV
    3440Huntsville, AL0.9400
    Limestone, AL
    Madison, AL
    3480Indianapolis, IN1.0434
    Boone, IN
    Hamilton, IN
    Hancock, IN
    Hendricks, IN
    Johnson, IN
    Madison, IN
    Marion, IN
    Morgan, IN
    Shelby, IN
    3500Iowa City, IA1.0237
    Johnson, IA
    3520Jackson, MI0.9419
    Jackson, MI
    3560Jackson, MS0.8936
    Hinds, MS
    Madison, MS
    Rankin, MS
    3580Jackson, TN0.9164
    Madison, TN
    Chester, TN
    3600Jacksonville, FL0.9544
    Clay, FL
    Duval, FL
    Nassau, FL
    St. Johns, FL
    3605Jacksonville, NC0.8367
    Onslow, NC
    3610Jamestown, NY0.8372
    Chautauqua, NY
    3620Janesville-Beloit, WI1.0289
    Rock, WI
    3640Jersey City, NJ1.2440
    Hudson, NJ
    3660Johnson City-Kingsport-Bristol, TN-VA0.9433
    Carter, TN
    Hawkins, TN
    Sullivan, TN
    Unicoi, TN
    Washington, TN
    Bristol City, VA
    Scott, VA
    Washington, VA
    3680Johnstown, PA0.9206
    Cambria, PA
    Somerset, PA
    Start Printed Page 60076
    3700Jonesboro, AR0.8000
    Craighead, AR
    3710Joplin, MO0.8181
    Jasper, MO
    Newton, MO
    3720Kalamazoo-Battlecreek, MI1.0635
    Calhoun, MI
    Kalamazoo, MI
    Van Buren, MI
    3740Kankakee, IL0.9162
    Kankakee, IL
    3760Kansas City, KS-MO0.9932
    Johnson, KS
    Leavenworth, KS
    Miami, KS
    Wyandotte, KS
    Cass, MO
    Clay, MO
    Clinton, MO
    Jackson, MO
    Lafayette, MO
    Platte, MO
    Ray, MO
    3800Kenosha, WI0.9625
    Kenosha, WI
    3810Killeen-Temple, TX1.0583
    Bell, TX
    Coryell, TX
    3840Knoxville, TN0.9802
    Anderson, TN
    Blount, TN
    Knox, TN
    Loudon, TN
    Sevier, TN
    Union, TN
    3850Kokomo, IN0.9503
    Howard, IN
    Tipton, IN
    3870La Crosse, WI-MN0.9519
    Houston, MN
    La Crosse, WI
    3880Lafayette, LA0.8886
    Acadia, LA
    Lafayette, LA
    St. Landry, LA
    St. Martin, LA
    3920Lafayette, IN0.9386
    Clinton, IN
    Tippecanoe, IN
    3960Lake Charles, LA0.8488
    Calcasieu, LA
    3980Lakeland-Winter Haven, FL0.9393
    Polk, FL
    4000Lancaster, PA0.9862
    Lancaster, PA
    4040Lansing-East Lansing, MI1.0631
    Clinton, MI
    Eaton, MI
    Ingham, MI
    4080Laredo, TX0.8868
    Webb, TX
    4100Las Cruces, NM0.9153
    Dona Ana, NM
    4120Las Vegas, NV-AZ1.1996
    Mohave, AZ
    Clarke, NV
    Nye, NV
    4150Lawrence, KS0.8761
    Douglas, KS
    4200Lawton, OK1.0157
    Comanche, OK
    4243Lewiston-Auburn, ME0.9482
    Androscoggin, ME
    4280Lexington, KY0.9090
    Bourbon, KY
    Clark, KY
    Fayette, KY
    Jessamine, KY
    Madison, KY
    Scott, KY
    Woodford, KY
    4320Lima, OH0.9489
    Allen, OH
    Auglaize, OH
    4360Lincoln, NE1.0304
    Lancaster, NE
    4400Little Rock-North Little Rock, AR0.9179
    Faulkner, AR
    Lonoke, AR
    Pulaski, AR
    Saline, AR
    4420Longview-Marshall, TX0.9311
    Gregg, TX
    Harrison, TX
    Upshur, TX
    4480Los Angeles-Long Beach, CA1.2841
    Los Angeles, CA
    4520Louisville, KY-IN0.9996
    Clark, IN
    Floyd, IN
    Harrison, IN
    Scott, IN
    Bullitt, KY
    Jefferson, KY
    Oldham, KY
    4600Lubbock, TX0.8962
    Lubbock, TX
    4640Lynchburg, VA0.9392
    Amherst, VA
    Bedford, VA
    Bedford City, VA
    Campbell, VA
    Lynchburg City, VA
    4680Macon, GA0.9089
    Bibb, GA
    Houston, GA
    Jones, GA
    Peach, GA
    Twiggs, GA
    4720Madison, WI1.0367
    Dane, WI
    4800Mansfield, OH0.9031
    Crawford, OH
    Richland, OH
    4840Mayaguez, PR0.5376
    Anasco, PR
    Cabo Rojo, PR
    Hormigueros, PR
    Mayaguez, PR
    Sabana Grande, PR
    San German, PR
    4880McAllen-Edinburg-Mission, TX0.8652
    Hidalgo, TX
    4890Medford-Ashland, OR1.1180
    Jackson, OR
    4900Melbourne-Titusville-Palm Bay, FL0.9905
    Brevard, Fl
    4920Memphis, TN-AR-MS0.8784
    Crittenden, AR
    DeSoto, MS
    Fayette, TN
    Shelby, TN
    Tipton, TN
    4940Merced, CA1.0950
    Merced, CA
    5000Miami, FL1.0904
    Dade, FL
    5015Middlesex-Somerset-Hunterdon, NJ1.1851
    Hunterdon, NJ
    Middlesex, NJ
    Somerset, NJ
    5080Milwaukee-Waukesha, WI1.0490
    Milwaukee, WI
    Ozaukee, WI
    Washington, WI
    Waukesha, WI
    5120Minneapolis-St. Paul, MN-WI1.1645
    Anoka, MN
    Carver, MN
    Chisago, MN Dakota, MN
    Hennepin, MN
    Isanti, MN
    Ramsey, MN
    Scott, MN
    Sherbune, MN
    Washington, MN
    Wright, MN
    Pierce, WI
    St. Croix, WI
    5140Missoula, MT0.9681
    Missoula, MT
    5160Mobile, AL0.8809
    Baldwin, AL
    Mobile, AL
    5170Modesto, CA1.0774
    Stanislaus, CA
    5190Monmouth-Ocean, NJ1.1996
    Monmouth, NJ
    Ocean, NJ
    5200Monroe, LA0.8760
    Ouachita, LA
    5240Montgomery, AL0.8208
    Autauga, AL
    Elmore, AL
    Montgomery, AL
    5280Muncie, IN1.1544
    Delaware, IN
    5330Myrtle Beach, SC0.9088
    Horry, SC
    5345Naples, FL1.0484
    Collier, FL
    5360Nashville, TN1.0068
    Cheatham, TN
    Davidson, TN
    Dickson, TN
    Robertson, TN
    Start Printed Page 60077
    Rutherford TN
    Sumner, TN
    Williamson, TN
    Wilson, TN
    5380Nassau-Suffolk, NY1.4997
    Nassau, NY
    Suffolk, NY
    5483New Haven-Bridgeport-Stamford-Waterbury-Danbury, CT1.3166
    Fairfield, CT
    New Haven, CT
    5523New London-Norwich, CT1.3242
    New London, CT
    5560New Orleans, LA0.9685
    Jefferson, LA
    Orleans, LA
    Plaquemines, LA
    St. Bernard, LA
    St. Charles, LA
    St. James, LA
    St. John The Baptist, LA
    St. Tammany, LA
    5600New York, NY1.5469
    Bronx, NY
    Kings, NY
    New York, NY
    Putnam, NY
    Queens, NY
    Richmond, NY
    Rockland, NY
    Westchester, NY
    5640Newark, NJ1.2409
    Essex, NJ
    Morris, NJ
    Sussex, NJ
    Union, NJ
    Warren, NJ
    5660Newburgh, NY-PA1.1624
    Orange, NY
    Pike, PA
    5720Norfolk-Virginia Beach-Newport News, VA-NC0.8993
    Currituck, NC
    Chesapeake City, VA
    Gloucester, VA
    Hampton City, VA
    James City, VA
    Isle of Wight, VA
    Mathews, VA
    Newport News City, VA
    Norfolk City, VA
    Poquoson City, VA
    Portsmouth City, VA
    Suffolk City, VA
    Virginia Beach City VA
    Williamsburg City, VA
    York, VA
    5775Oakland, CA1.6044
    Alameda, CA
    Contra Costa, CA
    5790Ocala, FL1.0245
    Marion, FL
    5800Odessa-Midland, TX0.9455
    Ector, TX
    Midland, TX
    5880Oklahoma City, OK0.9150
    Canadian, OK
    Cleveland, OK
    Logan, OK
    McClain, OK
    Oklahoma, OK
    Pottawatomie, OK
    5910Olympia, WA1.1648
    Thurston, WA
    5920Omaha, NE-IA1.1140
    Pottawattamie, IA
    Cass, NE
    Douglas, NE
    Sarpy, NE
    Washington, NE
    5945Orange County, CA1.2349
    Orange, CA
    5960Orlando, FL1.0437
    Lake, FL
    Orange, FL
    Osceola, FL
    Seminole, FL
    5990Owensboro, KY0.8635
    Daviess, KY
    6015Panama City, FL0.9770
    Bay, FL
    6020Parkersburg-Marietta, WV-OH0.8896
    Washington, OH
    Wood, WV
    6080Pensacola, FL0.8995
    Escambia, FL
    Santa Rosa, FL
    6120Peoria-Pekin, IL0.8896
    Peoria, IL
    Tazewell, IL
    Woodford, IL
    6160Philadelphia, PA-NJ1.1891
    Burlington, NJ
    Camden, NJ
    Gloucester, NJ
    Salem, NJ
    Bucks, PA
    Chester, PA
    Delaware, PA
    Montgomery, PA
    Philadelphia, PA
    6200Phoenix-Mesa, AZ1.0084
    Maricopa, AZ
    Pinal, AZ
    6240Pine Bluff, AR0.8202
    Jefferson, AR
    6280Pittsburgh, PA1.0265
    Allegheny, PA
    Beaver,PA
    Butler, PA
    Fayette, PA
    Washington, PA
    Westmoreland, PA
    6323Pittsfield, MA1.0927
    Berkshire, MA
    6340Pocatello, ID0.9561
    Bannock, ID
    6360Ponce, PR0.5717
    Guayanilla, PR
    Juana Diaz, PR
    Penuelas, PR
    Ponce, PR
    Villalba, PR
    Yauco, PR
    6403Portland, ME1.0096
    Cumberland, ME
    Sagadahoc, ME
    York, ME
    6440Portland-Vancouver, OR-WA1.1694
    Clackamas, OR
    Columbia, OR
    Multnomah, OR
    Washington, OR
    Yamhill, OR
    Clark, WA
    6483Providence-Warwick-Pawtucket, RI1.1391
    Bristol, RI
    Kent, RI
    Newport, RI
    Providence, RI
    Washington, RI
    6520Provo-Orem, UT1.0461
    Utah, UT
    6560Pueblo, CO0.9433
    Pueblo, CO
    6580Punta Gorda, FL0.9509
    Charlotte, FL
    6600Racine, WI0.9820
    Racine, WI
    6640Raleigh-Durham-Chapel Hill, NC1.0170
    Chatham, NC
    Durham, NC
    Franklin, NC
    Johnston, NC
    Orange, NC
    Wake, NC
    6660Rapid City, SD0.8911
    Pennington, SD
    6680Reading, PA1.0054
    Berks, PA
    6690Redding, CA1.2002
    Shasta, CA
    6720Reno, NV1.1353
    Washoe, NV
    6740Richland-Kennewick-Pasco, WA1.1959
    Benton, WA
    Franklin, WA
    6760Richmond-Petersburg, VA1.0171
    Charles City County, VA
    Chesterfield, VA
    Colonial Heights City, VA
    Dinwiddie, VA
    Goochland, VA
    Hanover, VA
    Henrico, VA
    Hopewell City, VA
    New Kent, VA
    Petersburg City, VA
    Powhatan, VA
    Prince George, VA
    Richmond City, VA
    6780Riverside-San Bernardino, CA1.1945
    Riverside, CA
    San Bernardino, CA
    Start Printed Page 60078
    6800Roanoke, VA0.8672
    Botetourt, VA
    Roanoke, VA
    Roanoke City, VA
    Salem City, VA
    6820Rochester, MN1.2178
    Olmsted, MN
    6840Rochester, NY0.9786
    Genesee, NY
    Livingston, NY
    Monroe, NY
    Ontario, NY
    Orleans, NY
    Wayne, NY
    6880Rockford, IL0.9359
    Boone, IL
    Ogle, IL
    Winnebago, IL
    6895Rocky Mount, NC0.9307
    Edgecombe, NC
    Nash, NC
    6920Sacramento, CA1.3089
    El Dorado, CA
    Placer, CA
    Sacramento, CA
    6960Saginaw-Bay City-Midland, MI0.9895
    Bay, MI
    Midland, MI
    Saginaw, MI
    6980St. Cloud, MN1.0038
    Benton, MN
    Stearns, MN
    7000St. Joseph, MO0.9529
    Andrew, MO
    Buchanan, MO
    7040St. Louis, MO-IL0.9645
    Franklin, MO
    Jefferson, MO
    Lincoln, MO
    St. Charles, MO
    St. Louis, MO
    St. Louis City, MO
    Warren, MO
    Clinton, IL
    Jersey, IL
    Madison, IL
    Monroe, IL
    St. Clair, IL
    7080Salem, OR1.0601
    Marion, OR
    Polk, OR
    7120Salinas, CA1.5674
    Monterey, CA
    7160Salt Lake City-Ogden, UT1.0500
    Davis, UT
    Salt Lake, UT
    Weber, UT
    7200San Angelo, TX0.8359
    Tom Green, TX
    7240San Antonio, TX0.8862
    Bexar, TX
    Comal, TX
    Guadalupe, TX
    Wilson, TX
    7320San Diego, CA1.2712
    7360San Francisco, CA1.4918
    Marin, CA
    San Francisco, CA
    San Mateo, CA
    7400San Jose, CA1.4500
    Santa Clara, CA
    7440San Juan-Bayamon, PR0.5357
    Aguas Buenas, PR
    Barceloneta, PR
    Bayamon, PR
    Canovanas, PR
    Carolina, PR
    Catano, PR
    Ceiba, PR
    Comerio, PR
    Corozal, PR
    Dorado, PR
    Fajardo, PR
    Florida, PR
    Guaynabo, PR
    Humacao, PR
    Juncos, PR
    Los Piedras, PR
    Loiza, PR
    Luguillo, PR
    Manati, PR
    Morovis, PR
    Naguabo, PR
    Naranjito, PR
    Rio Grande, PR
    San Juan, PR
    Toa Alta, PR
    Toa Baja, PR
    Trujillo Alto, PR
    Vega Alta, PR
    Vega Baja, PR
    Yabucoa, PR
    7460San Luis Obispo-Atascadero-Paso Robles, CA1.1156
    San Luis Obispo, CA
    7480Santa Barbara-Santa Maria-Lompoc, CA1.1528
    Santa Barbara, CA
    7485Santa Cruz-Watsonville, CA1.4840
    Santa Cruz, CA
    7490Santa Fe, NM1.1121
    Los Alamos, NM
    Santa Fe, NM
    7500Santa Rosa, CA1.3852
    Sonoma, CA
    7510Sarasota-Bradenton, FL1.0554
    Manatee, FL
    Sarasota, FL
    7520Savannah, GA1.0605
    Bryan, GA
    Chatham, GA
    Effingham, GA
    7560Scranton—Wilkes-Barre—Hazleton, PA0.8921
    Columbia, PA
    Lackawanna, PA
    Luzerne, PA
    Wyoming, PA
    7600Seattle-Bellevue-Everett, WA1.2030
    Island, WA
    King, WA
    Snohomish, WA
    7610Sharon, PA0.8826
    Mercer, PA
    7620Sheboygan, WI0.8740
    Sheboygan, WI
    7640Sherman-Denison, TX0.9940
    Grayson, TX
    7680Shreveport-Bossier City, LA0.9642
    Bossier, LA
    Caddo, LA
    Webster, LA
    7720Sioux City, IA-NE0.9108
    Woodbury, IA
    Dakota, NE
    7760Sioux Falls, SD0.9351
    Lincoln, SD
    Minnehaha, SD
    7800South Bend, IN1.0435
    St. Joseph, IN
    7840Spokane, WA1.1507
    Spokane, WA
    7880Springfield, IL0.9252
    Menard, IL
    Sangamon, IL
    7920Springfield, MO0.8515
    Christian, MO
    Greene, MO
    Webster, MO
    8003Springfield, MA1.1377
    Hampden, MA
    Hampshire, MA
    8840Washington, DC-MD-VA-WV1.1778
    District of Columbia, DC
    Calvert, MD
    Charles, MD
    Frederick, MD
    Montgomery, MD
    Prince Georges, MD
    Alexandria City, VA
    Arlington, VA
    Clarke, VA
    Culpeper, VA
    Fairfax, VA
    Fairfax City, VA
    Falls Church City, VA
    Fauquier, VA
    Fredericksburg City, VA
    King George, VA
    Loudoun, VA
    Manassas City, VA
    Start Printed Page 60079
    Manassas Park City, VA
    Prince William, VA
    Spotsylvania, VA
    Stafford, VA
    Warren, VA
    Berkeley, WV
    Jefferson, WV
    8920Waterloo-Cedar Falls, IA0.9075
    Black Hawk, IA
    8940Wausau, WI1.0064
    Marathon, WI
    8960West Palm Beach-Boca Raton, FL1.0668
    Palm Beach, FL
    9000Wheeling, WV-OH0.8144
    Belmont, OH
    Marshall, WV
    Ohio, WV
    9040Wichita, KS1.0038
    Butler, KS
    Harvey, KS
    Sedgwick, KS
    9080Wichita Falls, TX0.8154
    Archer, TX
    Wichita, TX
    8050State College, PA0.9737
    Centre, PA
    8080Steubenville-Weirton, OH-WV0.9179
    Jefferson, OH
    Brooke, WV
    Hancock, WV
    8120Stockton-Lodi, CA1.1207
    San Joaquin, CA
    8140Sumter, SC0.8778
    Sumter, SC
    8160Syracuse, NY1.1377
    Cayuga, NY
    Madison, NY
    Onondaga, NY
    Oswego, NY
    8200Tacoma, WA1.2230
    Pierce, WA
    8240Tallahassee, FL0.9040
    Gadsden, FL
    Leon, FL
    8280Tampa-St. Petersburg-Clearwater, FL0.9637
    Hernando, FL
    Hillsborough, FL
    Pasco, FL
    Pinellas, FL
    8320Terre Haute, IN0.9132
    Clay, IN
    Vermillion, IN
    Vigo, IN
    8360Texarkana, AR-Texarkana, TX0.8668
    Miller, AR
    Bowie, TX
    8400Toledo, OH1.0458
    Fulton, OH
    Lucas, OH
    Wood, OH
    8440Topeka, KS0.9937
    Shawnee, KS
    8480Trenton, NJ1.0764
    Mercer, NJ
    8520Tucson, AZ0.9315
    Pima, AZ
    8560Tulsa, OK0.8616
    Creek, OK
    Osage, OK
    Rogers, OK
    Tulsa, OK
    Wagoner, OK
    8600Tuscaloosa, AL0.8593
    Tuscaloosa, AL
    8640Tyler, TX0.9983
    Smith
    8680Utica-Rome, NY0.8842
    Herkimer, NY
    Oneida, NY
    8720Vallejo-Fairfield-Napa, CA1.4220
    Napa, CA
    Solano, CA
    8735Ventura, CA1.2206
    8750Victoria, TX0.8927
    8760Vineland-Millville-Bridgeton, NJ1.1206
    Cumberland, NJ
    8780Visalia-Turlare-Porterville, CA1.1093
    Tulare, CA
    8800Waco, TX0.8604
    McLennan, TX
    9140Williamsport, PA0.9003
    Lycoming, PA
    9160Wilmington-Newark, DE-MD1.2013
    New Castle, DE
    Cecil, MD
    9200Wilmington, NC1.0343
    Brunswick, NC
    New Hanover, NC
    9260Yakima, WA1.1009
    Yakima, WA
    9270Yolo, CA1.0356
    Yolo, CA
    9280York, PA0.9919
    York, PA
    9320Youngstown-Warren, OH1.0651
    Columbiana, OH
    Mahoning, OH
    Trumbull, OH
    9340Yuba City, CA1.1361
    Sutter, CA
    Yuba, CA
    9360Yuma, AZ1.0574
    Yuma, AZ
    1 This column lists each MSA area name (in italics) and each county, or county equivalent, in the MSA area. Counties not listed in this Table are considered to be Rural Areas. Wage Index values for these areas are found in Table B.
    2 Wage index values are based on FY 1996 hospital cost report data before reclassification. This wage index is further adjusted. Wage index values greater than 0.8 are subject to a budget-neutrality adjustment of 1.065425. Wage index values below 0.8 are adjusted to be the greater of a 15-percent increase, subject to a maximum wage index value of 0.8, or an adjustment by multiplying the hospital wage index value for a given area by the budget-neutrality adjustment. We have completed all of these adjustments and included them in the wage index values reflected in this table.

    Table B.—Wage Index for Rural Areas

    MSA code No.Nonurban areaWage index 1
    9901Alabama0.8000
    9902Alaska1.2847
    9903Arizona0.9104
    9904Arkansas0.8000
    9905California1.0603
    9906Colorado0.9391
    9907Connecticut1.3226
    9908Delaware0.9767
    9910Florida0.9575
    9911Georgia0.8625
    9912Hawaii1.1430
    9913Idaho0.9218
    9914Illinois0.8575
    9915Indiana0.8946
    9916Iowa0.8446
    Start Printed Page 60080
    9917Kansas0.8000
    9918Kentucky0.8569
    9919Louisiana0.8000
    9920Maine0.9205
    9921Maryland0.9197
    9922Massachusetts1.2114
    9923Michigan0.9392
    9924Minnesota0.9237
    9925Mississippi0.8000
    9926Missouri0.8229
    9927Montana0.8945
    9928Nebraska0.8532
    9929Nevada0.9693
    9930New Hampshire1.0554
    9931New Jersey 2
    9932New Mexico0.8927
    9933New York0.9202
    9934North Carolina0.8832
    9935North Dakota0.8148
    9936Ohio0.9216
    9937Oklahoma0.8000
    9938Oregon1.0514
    9939Pennsylvania0.9083
    9940Puerto Rico0.4886
    9941Rhode Island 2
    9942South Carolina0.8805
    9943South Dakota0.8073
    9944Tennessee0.8152
    9945Texas0.8000
    9946Utah0.9490
    9947Vermont1.0024
    9948Virgin Islands0.7252
    9949Virginia0.8421
    9950Washington1.1131
    9951West Virginia0.8597
    9952Wisconsin0.9333
    9953Wyoming0.9440
    9965Guam1.0240
    1 Wage index values are based on FY 1996 hospital cost report data before reclassification. This wage index is further adjusted. Wage index values greater than 0.8 are subject to a budget-neutrality adjustment of 1.065425. Wage index values below 0.8 are adjusted to be the greater of a 15-percent increase, subject to a maximum wage index value of 0.8, or an adjustment by multiplying the hospital wage index value for a given area by the budget-neutrality adjustment. We have completed all of these adjustments and have included them in the wage index values reflected in this table.
    2 All counties within the State are classified as urban.

    II. Regulatory Impact Statement

    We have examined the impacts of this notice as required by Executive Order 12866, the Unfunded Mandate Reform Act, and the Regulatory Flexibility Act (RFA) (Pub. L. 96-354). In this notice, we identified an impact on hospices as a result of changes in the way we compute the hospice wage index. The change in the methodology for computing the wage index was determined through a negotiated rulemaking committee and implemented in the August 8, 1997 final rule (62 FR 42860). We recognize that the BBRA adjusted hospice payments upward by 0.5 percent; however, we did not do a separate analysis of the impact of this payment adjustment. We used the new rates adjusted by the BBRA when estimating the payments to be made under the new wage index and when calculating the budget-neutrality adjustment factor. Overall, we believe the changes included in this notice to be insignificant.

    1. Executive Order 12866 and RFA

    Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects; distributive impacts; and equity). We have determined that this notice is not an economically significant rule under this Executive Order. The RFA requires agencies to analyze options for regulatory relief for small businesses. For purposes of the RFA, States and individuals are not considered small entities. However, most providers, physicians, and health care suppliers are small entities, either by nonprofit status or by having revenues of $5 million or less annually. Approximately 73 percent of Medicare certified hospices are identified as voluntary, government, or other agencies, and, therefore, are considered small entities. Because the National Hospice Organization estimates that approximately 70 percent of hospice patients are Medicare beneficiaries, we have not considered other sources of revenue in this analysis.

    As discussed below, the estimated decreases in payment to hospices overall are very slight. The most significant change is an increase in estimated payments to rural areas in East and West South Central, at 4.8 and 9.1 percent, respectively. The effects of this notice on West South Central alone, indicate that 54 of the 85 hospices in urban West South Central can be considered small entities that will experience an 9.1-percent increase in Medicare payments. Therefore, we anticipate this notice will have a significant, albeit positive, impact on a substantial number of small entities. However, the methodology for the hospice wage index was previously determined by consensus through a negotiated rulemaking committee that included representatives of national hospice associations; rural, urban, large and small hospices; multi-site hospices; and consumer groups. Based on the options considered, the committee determined that the methodology described in the committee statement, and adopted into regulation in the August 8, 1997 final rule, was favorable for the hospice community as well as for beneficiaries. Therefore, we believe that mitigating any negative effects on small entities has been taken into consideration.

    2. Congressional Review

    Section 804(2) of Title 5, United States Code (U.S.C.) (as added by section 251 of Pub. L. 104-121), specifies that a “major rule” is any rule that the Office of Management and Budget finds is likely to result in—

    • An annual effect on the economy of $100 million or more;
    • A major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or
    • Significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.

    We estimate that the impact of this notice will not be $100 million or more; therefore, this notice is not a major rule as defined in Title 5, United States Code, section 804(2) and is not being forwarded to the Congress for a 60-day review period.

    3. Unfunded Mandate

    The Unfunded Mandate Reform Act of 1995 also requires (in section 202) that agencies prepare an assessment of anticipated costs and benefits for any rule that may result in an expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. The notice has no consequential effect on State, local, or tribal governments. We believe the private sector costs of this notice fall below the threshold as well.

    4. Rural Hospital Impact

    Section 1102(b) of the Act requires us to prepare a regulatory impact analysis for any notice that may have a significant impact on the operations of a substantial number of small rural hospitals. Such an analysis must conform to the provisions of section 604 of the RFA. For purposes of section 1102(b) of the Act, we define a small rural hospital as a hospital that is located outside an MSA and has fewer than 50 beds.

    Because this notice has no direct impact on small hospitals, in accordance with 5 U.S.C. 604, the Start Printed Page 60081Secretary certifies that this notice will not have a significant impact on the operations of a substantial number of small rural hospitals.

    5. Federalism

    We have reviewed this notice under the threshold criteria of Executive Order 13132, Federalism, and have determined that this notice will not have any negative impact on the rights, roles, and responsibilities of State, local, or tribal governments.

    A. Anticipated Effects

    We have compared estimated payments using the FY 1983 hospice wage index to estimated payments using the FY 2001 wage index and determined the current hospice rates to be budget-neutral. As mentioned above, the negotiated rulemaking committee agreement required that we not pay more under the new wage index in the aggregate than we would have paid under the original wage index.

    This impact analysis compares hospice payments under the FY 2000 hospice wage index to the estimated payments using the FY 2001 wage index. The data used in developing the quantitative analysis for this notice were obtained from the March 2000 update of the national claims history file of all bills submitted during FY 1999. We deleted bills from hospices that have since closed.

    Table C demonstrates the results of our analysis. In Column 2 of Table C, we indicate the number of routine home care days that were included in our analysis, although the analysis was performed on all types of hospice care. Column 3 of Table C indicates payments that were made using the FY 2000 wage index. Column 4 of Table C is based on FY 1999 claims and estimates payments to be made to hospices using the FY 2001 wage index. The final column, which compares Columns 3 and 4, shows the percent change in estimated hospice payments made based on the category of the hospice.

    Table C categorizes hospices by various geographic and provider characteristics. The first row displays the results of the impact analysis for all Medicare certified hospices. The second and third rows of the table categorize hospices according to their geographic location (urban and rural). Our analysis indicated that there are 1,351 hospices located in urban areas and 798 hospices located in rural areas. The next two groupings in the table indicate the number of hospices by census region, also broken down by urban and rural hospices. The sixth grouping shows the impact on hospices based on the size of the hospice's program. We determined that the majority of hospice payments are made at the routine home care rate. Therefore, we based the size of each individual hospice's program on the number of routine home care days provided in 1999. The next grouping shows the impact on hospices by type of ownership. The final grouping shows the impact on hospices defined by whether they are provider-based or freestanding.

    The results of our analysis shows that the greatest increases in payment are for rural areas in the West and East South Central Regions, with a 9.1 percent and 4.8 percent increase, respectively. The greatest decreases in payment are for urban areas in the New England and Mountain regions, each with a 0.4 percent decrease, and for rural areas in the Middle Atlantic and Pacific regions, each with a 0.4 percent decrease.

    The breakdown by size, type of ownership, and facility base showed an increase in payments to all hospice programs. Small hospice programs showed significant increases of about 10 percent, while larger programs experienced only a negligible increase. Government-owned hospices showed the greatest estimated increase of 2.7 percent, while payments to voluntary hospices are expected to increase by 0.4 percent. In terms of hospice base, freestanding hospices showed the greatest estimated payment increase while home health agencies showed the smallest amount of payment increase.

    Table C.—Impact of Hospice Wage Index Change

    Number of hospices (1)Number of routine home care days in thousands (2)Payments using FY 2000 wage index in thousands (3)Estimated payments using FY 2001 wage index in thousands (4)Percent change in Hospice payments (5)
    (By geographic location):
    All Hospices2,14921,3542,490,7022,504,4390.6
    Urban Hospices1,35118,1202,185,7802,190,5900.2
    Rural Hospices7983,234304,922313,8492.9
    By Region—Urban:
    New England9464289,44789,051−0.4
    Middle Atlantic1702,245290,927291,8940.3
    South Atlantic1854,030509,079511,5830.5
    East North Central2242,862334,861336,6940.5
    East South Central941,169123,023123,5300.4
    West North Central961,061113,167113,4980.3
    West South Central1882,408261,632261,287−0.1
    Mountain881,135149,035148,443−0.4
    Pacific1832,325298,138298,0860
    Puerto Rico2924316,47016,5240.3
    By Region—Rural:
    New England26727,6667,8111.9
    Middle Atlantic3516817,28217,214−0.4
    South Atlantic11768163,90465,0051.7
    East North Central13656153,80154,5411.4
    East South Central8152448,15950,4814.8
    West North Central17440937,62238,9693.6
    West South Central8536229.64032.3519.1
    Mountain8721721.35922,0483.2
    Pacific5421724,01223,922−0.4
    Start Printed Page 60082
    Puerto Rico3231,4761,5072.1
    (Skilled)
    Routine home care days:
    0-1,754 days43739036,70040,60910.6
    1,754-4,373 days5021,504150,829154,3992.4
    4,373-9,681 days5563,669388,427390,2690.5
    9,681 + days65315,4491,875,3391,879,9690.2
    Type of ownership:
    Voluntary1,35113,9751,638,3391,644,6770.4
    Proprietary5736,714784,488790,1940.7
    Government19256858,17459,7702.7
    Other33979,7019,7971.0
    Hospice base:
    Freestanding87412,3681,451,8981,461,4210.7
    Home health agency7165,357625,165627,4400.4
    Hospital5383,503395,997397,8300.5
    Skilled nursing facility2112617,64217,7480.6

    In accordance with the provisions of Executive Order 12866, this regulation was reviewed by the Office of Management and Budget.

    Start Authority

    Authority: Section 1814(i) of the Social Security Act (42 U.S.C. 1395f (i)(1)).

    End Authority Start Signature

    (Catalog of Federal Domestic Assistance Program No. 93.773 Medicare—Hospital Insurance Program; and No. 93.774, Medicare—Supplementary Medical Insurance Program)

    Dated: August 21, 2000.

    Nancy-Ann Min DeParle,

    Administrator, Health Care Financing Administration.

    Dated: September 22, 2000.

    Donna E. Shalala,

    Secretary.

    End Signature End Supplemental Information

    [FR Doc. 00-25547 Filed 10-2-00; 12:23 pm]

    BILLING CODE 4120-01-P

Document Information

Effective Date:
10/1/2000
Published:
10/06/2000
Department:
Health Care Finance Administration
Entry Type:
Notice
Action:
Notice.
Document Number:
00-25547
Dates:
This notice is effective on October 1, 2000.
Pages:
60071-60082 (12 pages)
Docket Numbers:
HCFA-1135-N
PDF File:
00-25547.pdf