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GAO-01-1050R 1 (2001-08-21)

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

          B-288483


          August 21, 2001

          The Honorable Max Baucus
          Chairman
          The Honorable Chuck Grassley
          Ranking Minority Member
          Committee on Finance
          United States Senate

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

          Subject: Department of Health and Human Services, Centers for Medicare and
                  Medicaid Services: Medicare Program Prospective Payment System for
                  Inpatient Rehabilitation Facilities

          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, Centers
          for Medicare and Medicaid Services (CMS), entitled Medicare Program; Prospective
          Payment System for Inpatient Rehabilitation Facilities (RIN: 0938-AJ55). We
          received the rule on August 1, 2001. It was published in the Federal Register as a
          final rule on August 7, 2001. 66 Fed. Reg. 41316.

          The final rule establishes a prospective payment system for Medicare payment of
          inpatient hospital services provided by a rehabilitation hospital or by a rehabilitation
          unit of a hospital. The prospective payment system in this final rule replaces the
          reasonable cost-based payment system under which rehabilitation hospitals and
          rehabilitation units of hospitals are paid under Medicare.

          Enclosed is our assessment of the CMS' compliance with the procedural steps
          required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.
          Our review indicates that the CMS complied with the applicable requirements.

          If you have any questions about this report, please contact James W. Vickers,
          Assistant General Counsel, at (202) 512-8210. The official responsible for GAO


GAO-01-1050R

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