98-30992. Medicare Program; Limited Additional Opportunity to Request Certain Hospital Wage Data Revisions for FY 1999  

  • [Federal Register Volume 63, Number 223 (Thursday, November 19, 1998)]
    [Rules and Regulations]
    [Pages 64191-64195]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-30992]
    
    
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    DEPARTMENT OF HEALTH AND HUMAN SERVICES
    
    Health Care Financing Administration
    
    42 CFR Part 412
    
    [HCFA-1049-FC]
    RIN 0938-AJ26
    
    
    Medicare Program; Limited Additional Opportunity to Request 
    Certain Hospital Wage Data Revisions for FY 1999
    
    AGENCY: Health Care Financing Administration (HCFA), HHS.
    
    ACTION: Final rule with comment period.
    
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    SUMMARY: This final rule with comment period provides hospitals with a 
    limited additional opportunity to request certain revisions to their 
    wage data used to calculate the FY 1999 hospital wage index. In 
    addition, it explains the criteria that must be met to request a 
    revision, the types of revisions that will be considered, the 
    procedures for requesting a revision, the implementation of wage index 
    revisions, and other related issues. Requests for wage data revisions 
    must be received by the date and time specified in the ``DATES'' 
    section of this preamble. We will implement revisions to the hospital 
    wage index in accordance with this final rule with comment period on a 
    prospective basis only.
    
    DATES: Effective date: The provisions of this final rule with comment 
    period are effective on November 19, 1998.
        Request date: Requests for wage data revisions will be considered 
    if we receive them at the appropriate address, as provided below, no 
    later than 5 p.m. eastern standard time on December 3, 1998.
        Comment date: Comments will be considered if we receive them at the 
    appropriate address, as provided below, no later than 5 p.m. eastern 
    standard time on December 21, 1998.
    
    ADDRESSES: Request for wage data revisions: Revision request must be 
    sent to the following address: Health Care Financing Administration, 
    Center for Health Plans and Providers, Division of Acute Care, Mail 
    Stop: C4-05-27, 7500 Security Boulevard, Baltimore, MD 21244-1850, 
    Attention: Stephen Phillips.
        Comments: Mail an original and 3 copies of written comments to the 
    following address: Health Care Financing Administration, Department of 
    Health and Human Services, Attention: HCFA-1049-FC, P.O. Box 7517, 
    Baltimore, MD 21244-1850.
        If you prefer, you may deliver an original and 3 copies of your 
    written comments to one of the following addresses: Room 443-G, Hubert 
    H. Humphrey Building, 200 Independence Avenue, SW., Washington, D.C. 
    20201, or Room C5-14-03, 7500 Security Boulevard, Baltimore, Maryland 
    21244-1850.
        Information collection requirements: For comments that relate to 
    information collection requirements, mail a copy of comments to the 
    following: Health Care Financing Administration, Office of Information 
    Services, Information Technology Investment Management Group, Division 
    of HCFA Enterprise Standards, Room C2-26-17, 7500 Security Boulevard, 
    Baltimore, MD 21244-1850, Attn: John Burke HCFA-1049-NC, and the Office 
    of Management and Budget, Office of Information and Regulatory Affairs, 
    Room 10235, New Executive Office Building, Washington, DC 20503, Attn: 
    Allison Herron Eydt, HCFA Desk Officer.
    
    FOR FURTHER INFORMATION CONTACT: Stephen Phillips, (410) 786-4531.
    
    SUPPLEMENTARY INFORMATION:
    
    Comments, Procedures, Availability of Copies, and Electronic Access
    
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    to file code HCFA-1049-FC. Comments received timely will be available 
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    approximately 3 weeks after publication of a document, in Room 443-G of 
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    I. Introduction
    
        Section 1886(d)(3)(E) of the Social Security Act (the Act) requires 
    that, as part of the methodology for determining prospective payments 
    to hospitals for inpatient operating costs, the Secretary must adjust 
    standardized amounts ``for area differences in hospital wage levels by 
    a factor (established by the Secretary) reflecting the relative 
    hospital wage level in the geographic area of the hospital compared to 
    the national average hospital wage level.'' In addition, section 
    1886(d)(3)(E) of the Act requires that the hospital wage index be 
    updated annually and that updates or adjustments to the hospital wage 
    index be budget neutral.
        In the July 31, 1998 Federal Register (63 FR 40966), we published 
    hospital inpatient prospective payment rates and policies for Federal 
    fiscal year (FY) 1999, including the hospital wage index. The FY 1999 
    wage index is based on data from Medicare cost reports for cost 
    reporting periods beginning in FY 1995. This cost report data is 
    submitted by hospitals and certified by hospitals. Before the 
    calculation of the FY 1999 hospital wage index was published on July 
    31, 1998, we provided opportunities to hospitals to request wage data 
    revisions and to verify wage data in HCFA's files. We established
    
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    deadlines for requesting wage data revisions.
        Notwithstanding these deadlines, numerous hospitals have contacted 
    us to request revisions to the data reflected in the FY 1999 hospital 
    wage index. Many of these requests relate to issues arising from 
    hospitals failing to report costs in the first place and failing to 
    request revisions, or hospitals that failed to verify the final wage 
    data. However, it has come to our attention that certain aspects of the 
    development of the FY 1999 wage index may have led to some confusion 
    among the hospital community.
        In light of the totality of the circumstances, as discussed below 
    in section III of this preamble, we are providing hospitals with an 
    additional opportunity to request limited types of revisions to the 
    wage data used to calculate the FY 1999 hospital wage index. This final 
    rule with comment period explains the types of revisions we will 
    consider, the procedures for requesting revisions, the implementation 
    of wage index revisions, and related issues.
    
    II. Development of the FY 1999 Wage Index
    
        As noted above, the FY 1999 hospital wage index is based on data 
    submitted by hospitals on Medicare cost reports for cost reporting 
    periods beginning in FY 1995. These cost reports reflected changes to 
    the manner in which we required hospitals to report certain types of 
    costs, in particular, certain ``wage-related costs.''
        The development of the FY 1999 wage index also reflected changes to 
    the process for requesting wage data revisions. Under the timetable for 
    developing the wage index for FY 1998, we released a public use wage 
    data file in mid-August 1997, and hospitals could request corrections 
    for certain errors (data entry or tabulation errors) up until September 
    15, 1997 (after publication of the final rule on August 29, 1997, thus 
    necessitating publication of a subsequent correction notice). For the 
    development of the FY 1999 wage index, we revised the timetable for 
    making available public use wage data files and for requesting 
    revisions to wage data.
        The new process was designed so that the wage index published in 
    the final rule would incorporate all revisions, including those to 
    correct data entry or tabulation errors by the intermediary or HCFA as 
    reflected in a ``final'' public use file released prior to publication 
    of the final rule. We gave hospitals opportunities to examine the wage 
    data used to construct the proposed and the final FY 1999 hospital wage 
    indices, by making available two public use data files containing the 
    FY 1995 hospital wage data. In memoranda dated February 2 and April 21, 
    1998, we instructed Medicare fiscal intermediaries to inform the 
    hospitals they serve of the availability of the wage data files and the 
    process and time frame for hospitals to request revisions. The proposed 
    and the final wage data files were made available February 6 and May 
    14, 1998, respectively, through the Internet on HCFA's home page 
    (http://www.hcfa.gov). We instructed fiscal intermediaries to advise 
    hospitals of the alternative availability of these data through their 
    representative hospital organizations or directly from HCFA.
        Thus, under the timetable for developing the FY 1999 wage index, we 
    made available the final public use wage data file in May (rather than 
    August) and hospitals had to request corrections for data entry or 
    tabulation errors by the intermediary or HCFA by June 5, 1998 (rather 
    than mid-September as in past years).
        After developing the final wage index, it came to our attention 
    that hospitals may have been confused by certain aspects of the 
    development of the FY 1999 wage index, as discussed below.
    
    III. Provisions of the Final Rule With Comment Period
    
    A. Limited Additional Opportunity to Request Certain Wage Data 
    Revisions for FY 1999
    
        As explained further below, in this final rule with comment period, 
    we are providing hospitals a limited opportunity to request limited 
    types of revisions to the wage data used to calculate the FY 1999 wage 
    index. We are also addressing related issues. We are providing 
    hospitals with an additional opportunity to request certain limited 
    types of revisions because of the unique confluence of circumstances 
    relating to the development and application of the FY 1999 wage index 
    (as explained further below).
    
    B. Criteria for Requesting Revisions and Explanation of the Types 
    of Revisions
    
        We are providing a window of opportunity from the date of 
    publication of this final rule with comment period until the date and 
    time specified in the DATES section of this preamble for hospitals to 
    request revisions to their FY 1995 wage data, if they meet one of the 
    following criteria:
         The hospital's data on the May 1998 public use file is 
    recorded as zero on Line 28 of Worksheet S-3, Part III (wage-related 
    costs).
         The hospital's data on the May 1998 public use file is 
    recorded as zero in either column 3 or 4 (but not both), with nonzero 
    data in the other column, for Lines 2, 4, 6, or 33 of Worksheet S-3, 
    Part III.
         The hospital properly requested a wage data revision by 
    March 9, 1998, the fiscal intermediary approved a revision (as 
    reflected in a revised Worksheet S-3), but the fiscal intermediary or 
    HCFA made a data entry or tabulation error.
        We address each category in more detail below. We will not consider 
    requests for other types of revisions. Requests from hospitals meeting 
    these criteria must be limited to these specific criteria.
    1. Zero Wage-related Costs on Line 28 of Worksheet S-3, Part III
        The Medicare cost reports for cost reporting periods beginning in 
    FY 1995 reflected changes to the wage data portions (Parts II, III, and 
    IV) of Worksheet S-3. The FY 1999 wage index reflects, for the first 
    time, these changes to the cost report. We discussed these changes in 
    the rulemaking process for FY 1995, and we see no reason why hospitals 
    should not have properly reported these costs. Most hospitals did 
    report these costs, but it has come to our attention that a number of 
    hospitals incorrectly reported zero costs or otherwise did not include 
    costs on Line 28 of Worksheet S-3, Part III (wage-related costs).
        If the May 1998 public use file reflects zero wage-related costs 
    for a hospital, the hospital may request a revision to Line 28 of 
    Worksheet S-3, Part III. The hospital must provide adequate verifiable 
    documentation to support the costs.
    2. Zero Costs or Zero Hours (But Not Both) on Lines 2, 4, 6, or 33 of 
    Worksheet S-3, Part III
        For certain categories of costs, hospitals are required to report 
    both hours and dollars. It has come to our attention that a number of 
    hospitals reported either (1) nonzero dollars but zero hours or (2) 
    nonzero hours but zero dollars, on Lines 2, 4, 6, or 33 of Worksheet S-
    3. To calculate each hospital's average hourly wage, we summed the 
    dollars (Column 3) and hours (Column 4), respectively, for lines 2, 4, 
    6, 32, and 33. However, if a hospital reported zero dollars or zero 
    hours, but not both, for any of these lines (this situation did not 
    arise on line 32), we excluded the corresponding nonzero amount for 
    that line in
    
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    calculating the hospital's average hourly wage.
        Under this final rule with comment period, we are permitting 
    hospitals to request revisions if the hospital improperly reported zero 
    dollars or zero hours, but not both, for Lines 2, 4, 6, or 33 of 
    Worksheet S-3. In order for a hospital's request for revision to be 
    granted, a hospital must satisfactorily justify that these costs and 
    hours should be included. For example, if a hospital reported $500,000 
    in physician Part A salaries but reported zero hours attributable to 
    physician Part A services, in order for a request to be granted, the 
    hospital must report accurate hours related to those costs or otherwise 
    explain why that $500,000 should be included in the calculation.
    3. Data Entry or Tabulation Errors
        On May 14, 1998, we made available a ``final'' public use wage data 
    file. In the May 8 proposed rule, we stated, ``If, after reviewing the 
    final file, a hospital believes that its wage data are incorrect due to 
    a fiscal intermediary or HCFA error in the entry or tabulation of the 
    final wage data,'' the hospital had to request a revision by June 5, 
    1998 in order for the data to be revised.
        It has come to our attention that the revised timetable for 
    releasing the final wage file (May, rather than August) and the revised 
    deadline for requesting revisions for data entry or tabulation errors 
    (June 5, rather than mid-September) may have led to some confusion. If 
    a hospital properly requested a revision by March 9, 1998, and the 
    fiscal intermediary approved the revision (as reflected in a revised 
    Worksheet S-3), but there was an error in data entry or tabulation, we 
    will consider a hospital's request for revision to the wage data 
    notwithstanding the June 5, 1998 deadline. Thus, we are effectively 
    extending the June 5, 1998 deadline for correcting certain data entry 
    or tabulation errors.
    
    C. Rationale for Accepting Limited Types of Revisions
    
        We will consider requests only for the limited types of revisions 
    specified above. We will not consider requests for other types of 
    revisions.
        We are providing for these limited revisions because of the 
    totality of the circumstances, including--
         The number of hospitals contacting us about the same types 
    of problems;
         The hardship that might result for a number of hospitals 
    if we did not revise the wage data;
         The changes to the Medicare cost report, reflected for the 
    first time in the FY 1999 wage index;
         The revised statutory timetable for publishing the 
    proposed and final hospital inpatient prospective payment system rules, 
    effective for the first time for FY 1999 (see section 4644 of the 
    Balanced Budget Act of 1997); and
         The revised timetable for finalizing wage data (including 
    the revised timetable for releasing the final public use wage data file 
    and the revised timetable for requesting corrections of data entry and 
    tabulation errors), applied for the first time in developing the FY 
    1999 wage index.
        None of these factors, by itself, would be sufficient grounds for 
    making a mid-year revision. For example, we believe we should not make 
    a wage index revision merely because a single individual hospital might 
    receive significantly lower payments as a result of its failure to 
    properly report costs or its failure to properly request revisions and 
    verify data. In deciding which types of revisions we would make, we 
    considered the factors above not only in combination with each other, 
    but also in light of the previous opportunities we provided to 
    hospitals to verify data and request revisions.
        We evaluated the totality of the circumstances and decided it was 
    appropriate to make limited types of revisions. As indicated earlier, 
    we believe most problems with wage data arise because hospitals fail to 
    properly report costs on the cost report, fail to properly request 
    revisions, or fail to verify the data that the intermediary and HCFA 
    are using to calculate the wage index. We believe it would not be 
    necessary or appropriate to consider, at this time, requests for any 
    and all types of revisions to the FY 1995 wage data. We note that, if 
    we permitted hospitals to request any and all revisions, it would 
    presumably take longer for hospitals to receive revised wage indexes 
    for FY 1999.
        Also, we emphasize that this final rule with comment period should 
    not be construed as an acknowledgment that the development of the FY 
    1999 wage index, as reflected in the July 31 Federal Register, was in 
    any way unfair or unreasonable. Moreover, it should not be construed as 
    an acknowledgment that mid-year corrections may be appropriate in other 
    contexts or in other years. Many of our policies reflect balancing the 
    competing considerations of finality, accuracy, and certainty, and many 
    aspects of developing payment rates and policies require the use of the 
    best data available at the time. As stated above, we are providing for 
    limited wage data revisions for FY 1999 because of the totality of the 
    circumstances in this context.
    
    D. Procedures for Submission of Requests and Evaluation of Requests
    
        A hospital seeking a revision to its FY 1995 wage data under the 
    applicable criteria must submit a written request to both its fiscal 
    intermediary and HCFA, clearly explaining the basis for the request. 
    Each request must include all information and supporting documentation 
    needed for HCFA and the fiscal intermediary to determine whether the 
    request meets the applicable criteria, and to verify the accuracy of 
    the requested revision.
        A hospital seeking a revision must submit its request to the HCFA 
    official whose name appears in the ADDRESSES section of the preamble. 
    The request must be received by date and time specified in the DATES 
    section of this preamble.
        Upon receipt of a request for revision, HCFA will confer with the 
    hospital's fiscal intermediary as necessary and appropriate. We will 
    review each request and the supporting documentation and make a 
    decision as to whether to grant the request in full, reject it in full, 
    or grant it in part and reject it in part.
    
    E. Implementation of Wage Index Revisions
    
        We will implement the wage index revisions we make in accordance 
    with the process described in this final rule with comment period on a 
    prospective basis only. We note that the timing of wage index 
    revisions, as well as other adjustments described below, will depend in 
    part on the number of the requests that we receive. Also, we note that 
    this process might result in wage index revisions for hospitals that do 
    not request revisions, not only hospitals in the same labor market area 
    as hospitals that request revisions, but also all other hospitals. This 
    is because the hospital wage index measures relative wage levels across 
    geographic areas, and reflects the average hourly wage in each labor 
    market area as well as the national average hourly wage.
    
    IV. Other Related Issues
    
    A. Budget Neutrality and Adjustment to Standardized Amounts
    
        Under section 1886(d)(3)(E) of the Act, ``adjustments or updates'' 
    to the hospital wage index for a fiscal year ``shall be made in a 
    manner that assures that aggregate payments . . . in the fiscal year 
    are not greater than or less than those that would have been made in 
    the year without such adjustment.'' Accordingly, to the extent that 
    mid-year revisions to the hospital wage index would affect aggregate 
    payments, we
    
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    will apply a budget neutrality adjustment to the standardized amounts 
    so that aggregate payments ``are not greater than or less than those 
    that would have been made in the year without [mid-year wage index] 
    adjustment.'' With respect to individual hospitals who do not request 
    revisions, we anticipate that the combined impact of wage index 
    revisions and the budget neutrality adjustment will be minimal, because 
    the ``cost'' of permitting wage index revisions to some hospitals will 
    be spread out over all prospective payment hospitals.
        As discussed in numerous Federal Register documents, we calculate a 
    budget neutrality adjustment by simulating payments with and without 
    the adjustment to the wage indexes. We would implement the budget 
    neutrality adjustment (on a prospective basis) at the same time we 
    implement the revised wage indexes.
        Also, we note that the capital prospective payment system 
    incorporates the hospital wage index for operating costs. Accordingly, 
    we will incorporate the wage index revisions made in accordance with 
    this final rule with comment period into capital prospective payments, 
    including the geographic adjustment factor (GAF).
    
    B. The Relationship Between Wage Revisions and the MGCRB Process
    
        Under section 1886(d)(10) of the Act, the Medicare Geographic 
    Classification Review Board (MGCRB) considers applications by hospitals 
    to be reclassified to another geographic area for purposes of the wage 
    index. For purposes of evaluating a hospital's application for 
    reclassification for FY 2000, the MGCRB will use hospitals' average 
    hourly wages incorporating all of the revisions made in accordance with 
    this final rule with comment period at the time the MGCRB rules on the 
    hospital's application.
    
    V. Response to Comments
    
        Because of the large number of items of correspondence we normally 
    receive on Federal Register documents published for comment, we are not 
    able to acknowledge or respond to them individually. We will consider 
    all comments we receive by the date and time specified in the DATES 
    section of this preamble, and, when we proceed with a subsequent 
    document, we will respond to the comments in the preamble to that 
    document.
    
    VI. Waiver of Notice of Proposed Rulemaking and 30-Day Delay in the 
    Effective Date
    
        We ordinarily publish a notice of proposed rulemaking to provide a 
    period of public comment on a rule. However, we may waive that 
    procedure if we find good cause that prior notice and comment would be 
    impracticable, unnecessary, or contrary to public interest.
        We find that it would be impracticable to undertake prior notice 
    and comment procedures before implementing this final rule with comment 
    period. This final rule with comment period provides hospitals with a 
    limited opportunity to request very limited types of revisions to the 
    wage data used to calculate the FY 1999 hospital wage index. As 
    discussed earlier, we are providing this process for mid-year revisions 
    because of the totality of the circumstances arising this year. These 
    circumstances include the number of hospitals contacting us about the 
    same types of wage data problems (reflecting apparent confusion about 
    certain aspects of the development of the FY 1999 wage index) and the 
    hardship that might result if we did not revise the wage data for these 
    hospitals. If we delayed the wage data revision process in order to 
    complete notice and comment procedures, we would delay the 
    implementation of revised wage indexes and thus diminish the extent to 
    which we address the potential hardship that might result for certain 
    hospitals. Also, it is essential to finalize the FY 1999 wage index 
    process expeditiously because the MGCRB will soon be evaluating and 
    making decisions on applications for hospital geographic 
    reclassification for FY 2000. The MGCRB's decision-making process for 
    these applications requires analysis of the wage data used to calculate 
    the FY 1999 wage index, and delaying the wage data revision process 
    might result in problems in the MGCRB process.
        For these reasons, we find that it would be impracticable to 
    complete notice and comment procedures before providing hospitals with 
    the opportunity to request revisions to the wage data used to calculate 
    the FY 1999 wage index. Therefore, we find good cause to waive the 
    notice of proposed rulemaking and to issue this document as a final 
    rule with comment period. We are providing a 30-day period for public 
    comment.
        Also, we normally provide a delay of 30 days in the effective date 
    of a regulation. However, if adherence to this procedure would be 
    impracticable, unnecessary, or contrary to the public interest, we may 
    waive the delay in the effective date. For the reasons discussed above, 
    it is important that the provisions of this final rule with comment 
    period have immediate effect so that we can finalize the FY 1999 wage 
    index. Therefore, we find good cause to waive the usual 30-day delay in 
    the effective date.
    
    VII. Collection of Information Requirements
    
        Under the Paperwork Reduction Act of 1995 (PRA), agencies are 
    required to provide a 60-day notice in the Federal Register and solicit 
    public comment before a collection of information requirement is 
    submitted to the Office of Management and Budget (OMB) for review and 
    approval. In order to fairly evaluate whether an information collection 
    should be approved by OMB, section 3506(c)(2)(A) of the PRA requires 
    that we solicit comment on the following issues:
         Whether the information collection is necessary and useful 
    to carry out the proper functions of the agency;
         The accuracy of the agency's estimate of the information 
    collection burden;
         The quality, utility, and clarity of the information to be 
    collected; and
         Recommendations to minimize the information collection 
    burden on the affected public, including automated collection 
    techniques.
        While a hospital seeking a revision to its FY 1995 cost report wage 
    data must submit a request, including all information and supporting 
    documentation needed to determine whether the request meets the 
    applicable criteria and to verify the accuracy of the requested 
    revision, HCFA believes this request for information meets one of the 
    exceptions to the definition of information under the PRA and is 
    therefore not subject to the PRA. In summary, 5 CFR 1320.3(h)(9) states 
    that information does not include, ``facts or opinions solicited 
    through nonstandardized follow-up questions designed to clarify 
    responses to approved collections of information''. Since we believe 
    this voluntary request is not standardized and is designed only to 
    provide hospitals with an additional opportunity to clarify information 
    previously provided to HCFA in their 1995 cost report (HCFA-2552, OMB 
    approval #0938-0050, current expiration date of 8/31/2000), HCFA 
    believes that this exception to the PRA applies.
        If you want to comment on this issue, please mail copies directly 
    to the HCFA and OMB officials whose names appear
    
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    in the ADDRESSES section of this preamble.
    
    VIII. Regulatory Impact Statement
    
        We have examined the impacts of this final rule with comment period 
    as required by Executive Order 12866 and the Regulatory Flexibility Act 
    (RFA) (Public Law 96-354). 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). 
    The RFA requires agencies to analyze options for regulatory relief of 
    small businesses. For purposes of the RFA, small entities include small 
    businesses, nonprofit organizations, and government agencies. Most 
    hospitals and most other providers and suppliers are small entities, 
    either by nonprofit status or by having revenues of $5 million or less 
    annually. For purposes of the RFA, all hospitals are considered to be 
    small entities.
        Section 1102(b) of the Act, requires us to prepare a regulatory 
    impact analysis if a rule 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 of a Metropolitan 
    Statistical Area (MSA) and has fewer than 50 beds.
        The implementation of this final rule with comment period will have 
    isolated positive payment impacts in areas whose wage indexes include 
    hospitals receiving wage data revisions as described above. We believe 
    approximately 163 hospitals had zero on Line 28 of Worksheet S-3, Part 
    III, on the May 1998 public use file. In addition, we believe 
    approximately 127 hospitals had zero in either column 3 or 4 (but not 
    both), with nonzero data in the other column, for Lines 2, 4, 6, or 33 
    of Worksheet S-3, Part III, on the May 1998 public use file. We do not 
    know how many, if any, hospitals may be eligible under the third 
    criterion: the hospital properly requested a wage data revision by 
    March 9, 1998, the fiscal intermediary approved a revision, but the 
    fiscal intermediary or HCFA made a data entry or tabulation error on 
    the May 1998 public use file.
        Of the approximately 163 hospitals potentially eligible under the 
    first criterion, there are 59 rural hospitals (located in 15 different 
    States) and 104 urban hospitals (located in 63 different MSAs). Of the 
    approximately 127 hospitals potentially eligible under the second 
    criterion, there are 40 rural hospitals and 87 urban hospitals.
        All other hospitals' wage index values are likely to decrease 
    slightly as a result of any revisions under this process. This is 
    because the revisions will likely have the effect of slightly 
    increasing the national average hourly wage ($20.7325 in the July 31, 
    1998 final rule (63 FR 40973)). Therefore, hospitals in areas without 
    any revisions may experience a slight decrease in their wage index 
    values when their area's unchanged average hourly wage is compared to 
    the higher national average hourly wage.
        In addition, as described above in section IV.A., we intend to 
    implement any necessary budget neutrality adjustment at the same time 
    we implement revised wage indexes. The impact of this adjustment will 
    depend on the changes to the hospital wage index. With respect to 
    hospitals in labor market areas whose average hourly wage is not 
    affected, we believe the combined effect of the higher national average 
    hourly wage and budget neutrality will be minimal. We will estimate and 
    publish the entire impacts of payment changes associated with any 
    revisions to hospitals' wage indexes in the subsequent document to this 
    final rule with comment period.
    
    IX. Contract With America Advancement Act (Public Law 104-121)
    
        This rule has been determined to be a major rule as defined in 
    Title 5, United States Code, section 804(2). Although the actual impact 
    of this final rule with comment period cannot be determined prior to 
    reviewing the revision requests, we believe it could range from $0 to 
    $500 million. Ordinarily, under 5 U.S.C. 801, as added by section 251 
    of Pub. L. 104-121, a major rule shall take effect 60 days after the 
    later of (1) the date a report on the rule is submitted to the Congress 
    or (2) the date the rule is published in the Federal Register. However, 
    section 808(2) of Title 5, United States Code, provides that, 
    notwithstanding 5 U.S.C. 801, a major rule shall take effect at such 
    time as the Federal agency promulgating the rule determines, if for 
    good cause the agency finds that notice and public procedure are 
    impracticable, unnecessary, or contrary to the public interest. As 
    indicated above, for good cause we find that it was impracticable to 
    complete notice and comment procedures before publication of this rule. 
    Accordingly, pursuant to 5 U.S.C. 808(2), this final rule with comment 
    period is effective on November 19, 1998.
    
    .(Catalog of Federal Domestic Assistance Program No. 93.773, 
    Medicare--Hospital Insurance; and Program No. 93.774, Medicare--
    Supplementary Medical Insurance Program)
    
        Dated: October 30, 1998.
    Nancy-Ann Min DeParle,
    Administrator, Health Care Financing Administration.
    
        Approved: November 3, 1998.
    Donna E. Shalala,
    Secretary.
    [FR Doc. 98-30992 Filed 11-17-98; 10:27 am]
    BILLING CODE 4120-01-P
    
    
    

Document Information

Published:
11/19/1998
Department:
Health Care Finance Administration
Entry Type:
Rule
Action:
Final rule with comment period.
Document Number:
98-30992
Pages:
64191-64195 (5 pages)
Docket Numbers:
HCFA-1049-FC
RINs:
0938-AJ26
PDF File:
98-30992.pdf
CFR: (1)
42 CFR 412