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GAO-01-194R 1 (2000-11-27)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548

          B-286796



          November 27, 2000

          The Honorable William V. Roth
          Chairman
          The Honorable Daniel Patrick Moynihan
          Ranking Minority Member
          Committee on Finance
          United States Senate

          The Honorable Thomas J. Bliley, Jr.
          Chairman
          The Honorable John D. Dingell
          Ranking Minority Member
          Committee on Commerce
          House of Representatives

          The Honorable Bill Archer
          Chairman
          The Honorable Charles Rangel
          Ranking Minority Member
          Committee on Ways and Means
          House of Representatives

          Subject: Department of Health and Human Services, Health Care Financing
                  Administration: Medicare Program Prospective Payment System for
                  Hospital Outpatient Services

          Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Health and Human Services, Health
          Care Financing Administration (HCFA), entitled Medicare Program; Prospective
          Payment System for Hospital Outpatient Services (RIN: 0938-AI56). We received the
          rule on November 2, 2000. It was published in the Federal Register as an interim
          final rule with comment period on November 13, 2000. 65 Fed. Reg. 67798.

          The rule provides for the annual update to the Medicare hospital outpatient
          prospective payment system conversion factor that is used to calculate the payment
          amount for each payment group, effective January 1, 2001. It also updates the wage
          index values and incorporates the year 2001 changes in the procedure codes that are
          used to make payments under the system.


GAO-01-194R

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