[Code of Federal Regulations]

[Title 42, Volume 2]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR412.102]



[Page 512]

 

                         TITLE 42--PUBLIC HEALTH

 

                    CHAPTER IV--CENTERS FOR MEDICARE

                          & MEDICAID SERVICES,

                        DEPARTMENT OF HEALTH AND

                             HUMAN SERVICES

 

PART 412_PROSPECTIVE PAYMENT SYSTEMS FOR INPATIENT HOSPITAL SERVICES

--Table of Contents

 

Subpart G_Special Treatment of Certain Facilities Under the Prospective 

              Payment System for Inpatient Operating Costs

 

Sec. 412.102  Special treatment: Hospitals located in areas that are 

reclassified from urban to rural as a result of a geographic 

redesignation.



    Effective on or after October 1, 1983, a hospital reclassified as 

rural, as defined in subpart D of this part, may receive an adjustment 

to its rural Federal payment amount for operating costs for two 

successive fiscal years.

    (a) First year adjustment. The hospital's rural average standardized 

amount and disproportionate share payments as described in Sec. 412.106 

are adjusted on the basis of an additional amount that equals two-thirds 

of the difference between the urban standardized amount and 

disproportionate share payments applicable to the hospital before its 

reclassification and the rural standardized amount and disproportionate 

share payments otherwise applicable to the Federal fiscal year for which 

the adjustment is made.

    (b) Second year adjustment. If a hospital continues to be 

reclassified as rural, its rural average standardized amount and 

disproportionate share payments are adjusted on the basis of an 

additional amount that equals one-third of the difference between the 

urban standardized amount and disproportionate share payments applicable 

to the hospital before its reclassification and the rural standardized 

amounts and disproportionate share payments otherwise applicable to the 

Federal fiscal year for which the adjustment is made.



[58 FR 46338, Sept. 1, 1993, as amended at 65 FR 47047, Aug. 1, 2000; 69 

FR 49244, Aug. 11, 2004]