This is historical material, "frozen in time."
The web site is no longer updated and links to external web sites and some internal pages will not work.
This is historical material, "frozen in time."
The web site is no longer updated and links to external web sites and some internal pages will not work.
OFFICE OF MANAGEMENT AND BUDGET
Cost of Hospital and Medical Care Treatment Furnished by the United States;
Certain Rates Regarding Recovery From Tortiously Liable Third Persons
By virtue of the authority vested in the President by Section 2(a) of P.L. 87-693 (76
Stat. 593; 42
U.S.C.2652), and delegated to the Director of the Office of Management and Budget by
Executive Order No. 11541 of July 1, 1970 (35 Federal Register 10737), the two sets of rates
outlined below are hereby established. These rates are for use in connection with the recovery,
from tortiously liable third persons, of the cost of hospital and medical care and treatment
furnished by the United States (Part 43, Chapter I, Title 28, Code of Federal Regulations)
through three separate Federal agencies. The rates have been established in accordance with the
requirements of OMB Circular A-25, requiring reimbursement of the full cost of all services
provided. The rates are established as follows:
1. Department of Defense
The FY 1999 Department of Defense (DoD) reimbursement rates for inpatient,
outpatient, and
other services are provided in accordance with Section 1095 of title 10, United States Code. Due
to size, the sections containing the Drug Reimbursement Rates (Section III.E) and the rates for
Ancillary Services Requested by Outside Providers (Section III.F) are not included in this
package. The Office of the Assistant Secretary of Defense (Health Affairs) will provide these
rates upon request. The medical and dental service rates in this package (including the rates for
ancillary services, prescription drugs or other procedures requested by outside providers) are
effective October 1, 1998.
2. Health and Human Services
The sum of obligations for each cost center providing medical service is broken down
into
amounts attributable to inpatient care on the basis of the proportion of staff devoted to each cost
center. Total inpatient costs and outpatient costs thus determined are divided by the relevant
workload statistic (inpatient day, outpatient visit) to produce the inpatient and outpatient rates.
In calculation of the rates, the Department's unfunded retirement liability cost and capital and
equipment depreciation cost were incorporated to conform to requirements set forth in OMB
Circular A-25. In addition, each cost center's obligations include obligations from certain other
accounts, such as Medicare and Medicaid collections and Contract Health funds that were used to
support direct program operations. Certain cost centers that primarily support workload outside
of the directly operated hospitals or clinics (public health nursing, public health nutrition, health
education) were excluded. These obligations are not a part of the traditional cost of hospital
operations and do not contribute directly to the inpatient and outpatient visit workload. Overall,
these rates reflect a more accurate indication of the cost of care in HHS facilities.
In addition, separate rates per inpatient day and outpatient visit were computed for
Alaska and
the rest of the United States. This gives proper weight to the higher cost of operating medical
facilities in Alaska.
1. Department of Defense
For the Department of Defense, effective October 1, 1998 and thereafter:
Inpatient, Outpatient And Other Rates And Charge. Inpatient Rates 1 2
International military education per inpatient
day
Interagency& Other Federal Agency &Training
(IMET)
Other Sponsored Patients
A. Burn Center
$2,538.00
$4,632.00
$4,952.00
B. Surgical Care Services (Cosmetic
Surgery)
$1,236.00
$2,255.00
$2,411.00
C.All Other Inpatient Services (Based on Diagnosis Related Groups (DRG)
3)
1.FY99 Direct Care Inpatient Reimbursement Rates
Adjusted standard amount
IMET
Interagency
Other (full/third party)
Large Urban
$2,429.00
$4,552.00
$4,825.00
Other Urban/Rural
$2,642.00
$5,413.00
$5,760.00
Overseas
$2,989.00
$6,823.00
$7,234.00
2. Overview
The FY99 inpatient rates are based on the cost per DRG, which is the inpatient full
reimbursement rate per hospital discharge weighted to reflect the intensity of the principal
diagnosis, secondary diagnoses, procedures, patient age, etc. involved.
The average cost per
Relative Weighted Product (RWP) for large urban, other urban/rural, and overseas facilities will
be published annually as an inpatient adjusted standardized amount (ASA) (see paragraph I.C.1.
above). The ASA will be applied to the RWP for each inpatient case, determined from the DRG
weights, outlier thresholds, and payment rules published annually for hospital reimbursement
rates under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)
pursuant to 32 CFR 199.14(a)(1), including adjustments for length of stay (LOS) outliers. The
published ASAs will be adjusted for area wage differences and indirect medical education (IME)
for the discharging hospital. An example of how to apply DoD costs to a DRG standardized
weight to arrive at DoD costs is contained in paragraph I.C.3., below.
3. Example of Adjusted Standardized Amounts for Inpatient Stays
Figure 1 shows examples for a nonteaching hospital in a Large Urban Area.
a. The cost to be recovered is DoD's cost for medical services provided in the
nonteaching
hospital located in a large urban area. Billings will be at the third party rate.
b. DRG 020: Nervous System Infection Except Viral Meningitis. The RWP for
an inlier case is
the CHAMPUS weight of 2.9769. (DRG statistics shown are from FY 1997).
c. The DoD adjusted standardized amount to be charged is $4,825 (i.e., the third
party rate as shown in the table).
d. DoD cost to be recovered at a nonteaching hospital with area wage index of 1.0
is the RWP factor (2.9769 ) in 3.b., above, multiplied by the amount ($4,825) in 3.c.,
above.
e. Cost to be recovered is $14,364.
FIGURE 1. THIRD
PARTY BILLING EXAMPLES
DRG No.
DRG Description
DRG
Weight
Arithmetic Mean LOS
Geometric Mean LOS
Short Stay Threshold
Long Stay Threshold
020
Nervous System Infection Except Viral Meningitis
2.9769
11.2
7.8
1
30
Hospital
Location
Area Wage
Rate Index
IME
Adjustment
Group ASA
Applied ASA
Nonteaching Hospital
Large Urban
1.0
1.0
$4,825.00
$4,825.00
Relative Weighted Product
Patient
Length of Stay
Days Above Threshold
Inlier*
Outlier**
Total
TPC amount***
#1
7 days
0
2.9769
0.0000
2.9769
$14,364
#2
21 days
0
2.9769
0.0000
2.9769
$14,364
#3
35 days
5
2.9769
0.6297
3.6066
$17,402
* DRG Weight
** Outlier calculation = 33 percent of per diem weight × number of outlier days
= .33 (DRG Weight/Geometric Mean LOS) × (Patient LOS - Long Stay
Threshold)
= .33 (2.9769/7.8) × (35-30)
= .33 (.38165) × 5 (take out to five decimal places)
= .12594 × 5 (take out to five decimal places)
= .6297 (take out to four decimal places)
*** Applied ASA × Total RWP
II. Outpatient Rates1 2Per Visit
MEPRS code 4
Clinical service
International
military education
& training
(IMET)
Interagency &
Other federal agency sponsored patients
Other (full/third
party)
A. Medical Care
BAA
Internal Medicine
$104.00
$186.00
$198.00
BAB
Allergy
48.00
86.00
92.00
BAC
Cardiology
78.00
140.00
149.00
BAE
Diabetic
57.00
102.00
108.00
BAF
Endocrinology (Metabolism)
90.00
162.00
173.00
BAG
Gastroenterology
114.00
205.00
219.00
BAH
Hematology
145.00
260.00
277.00
BAI
Hypertension
89.00
160.00
170.00
BAJ
Nephrology
138.00
245.00
261.00
BAK
Neurology
112.00
200.00
213.00
BAL
Outpatient Nutrition
33.00
59.00
63.00
BAM
Oncology
132.00
236.00
251.00
BAN
Pulmonary Disease
118.00
211.00
225.00
BAO
Rheumatology
84.00
151.00
160.00
BAP
Dermatology
68.00
122.00
130.00
BAQ
Infectious Disease
126.00
225.00
240.00
BAR
Physical Medicine
74.00
133.00
142.00
BAS
Radiation Therapy
91.00
164.00
174.00
B. Surgical Care
BBA
General Surgery
164.00
295.00
314.00
BBB
Cardiovascular and Thoracic Surgery
132.00
237.00
252.00
BBC
Neurosurgery
188.00
337.00
359.00
BBD
Ophthalmology
102.00
183.00
194.00
BBE
Organ Transplant
239.00
429.00
457.00
BBF
Otolaryngology
124.00
222.00
237.00
BBG
Plastic Surgery
129.00
231.00
247.00
BBH
Proctology
65.00
117.00
124.00
BBI
Urology
125.00
224.00
239.00
BBJ
Pediatric Surgery
91.00
163.00
174.00
C. Obstetrical and Gynecological (OB-GYN)
Care
BCA
Family Planning
45.00
81.00
87.00
BCB
Gynecology
101.00
181.00
193.00
BCC
Obstetrics
72.00
129.00
137.00
BCD
Breast Cancer Clinic
171.00
307.00
327.00
D. Pediatric Care
BDA
Pediatric
63.00
113.00
120.00
BDB
Adolescent
60.00
108.00
115.00
BDC
Well Baby
40.00
71.00
76.00
E. Orthopaedic Care
BEA
Orthopaedic
118.00
212.00
226.00
BEB
Cast
50.00
90.00
96.00
BEC
Hand Surgery
61.00
109.00
116.00
BEE
Orthotic Laboratory
60.00
108.00
115.00
BEF
Podiatry
67.00
119.00
127.00
BEZ
Chiropractic
24.00
42.00
45.00
F. Psychiatric and/or Mental Health Care
BFA
Psychiatry
97.00
174.00
186.00
BFB
Psychology
79.00
141.00
150.00
BFC
Child Guidance
52.00
93.00
99.00
BFD
Mental Health
105.00
188.00
201.00
BFE
Social Work
77.00
137.00
146.00
BFF
Substance Abuse
82.00
147.00
156.00
G. Family Practice/Primary Medical
Care
BGA
Family Practice
74.00
133.00
141.00
BHA
Primary Care
75.00
134.00
143.00
BHB
Medical Examination
66.00
118.00
126.00
BHC
Optometry
48.00
86.00
91.00
BHD
Audiology
27.00
49.00
52.00
BHE
Speech Pathology
69.00
123.00
131.00
BHF
Community Health
48.00
87.00
92.00
BHG
Occupational Health
78.00
141.00
150.00
BHH
TRICARE Outpatient
44.00
79.00
84.00
BHI
Immediate Care
108.00
193.00
206.00
H. Emergency Medical Care
BIA
Emergency Medical
114.00
205.00
218.00
I. Flight Medical Care
BJA
Flight Medicine
103.00
185.00
197.00
J. Underseas Medical Care
BKA
Underseas Medicine
35.00
63.00
67.00
K. Rehabilitative Services
BLA
Physical Therapy
34.00
60.00
64.00
BLB
Occupational Therapy
48.00
86.00
91.00
III. Other Rates And Charges1 2 Per Visit
MEPRS
Code 4
Clinical Service
International
Military Education
& Training
(IMET)
Interagency &
Other Federal
Agency
Sponsored
Patients
Other (full/third
party)
FBI
A. Immunization
$13.00
$22.00
$24.00
DGC
B. Hyperbaric Chamber 5
191.00
343.00
366.00
C. Ambulatory Procedure Visit (APV) 6
926.00
1,657.00
1,765.00
D. Family Member Rate (formerly Military Dependents Rate)
10.45
..........
..........
E. Reimbursement Rates For Drugs Requested By Outside Providers
7
The FY 1999 drug reimbursement rates for drugs are for prescriptions requested by
outside
providers and obtained at a Military Treatment Facility. The rates are established based on the
cost of the particular drugs provided. Final rule 32 CFR Part 220 eliminates the high cost
ancillary services' dollar threshold and the associated term "high cost ancillary service." The
phrase "high cost ancillary service" will be replaced with the phrase "ancillary services requested
by an outside provider" on publication of final rule 32 CFR Part 220. The list of drug
reimbursement rates is too large to include here. These rates are available on request from
OASD (Health Affairs).
F. Reimbursement Rates for Ancillary Services Requested By Outside
Providers 8
Final rule 32 CFR Part 220 eliminates the high cost ancillary services' dollar threshold
and the
associated term "high cost ancillary service." The phrase "high cost ancillary service" will be
replaced with the phrase "ancillary services requested by an outside provider" on publication of
final rule 32 CFR Part 220. The list of FY 1999 rates for ancillary services requested by outside
providers and obtained at a Military Treatment Facility is too large to include here. These rates
are available on request from OASD(Health Affairs).
G. Elective Cosmetic Surgery Procedures and Rates
Cosmetic Surgery
Procedure
International Classification
Diseases (ICD-9)
Current Procedural Terminology
(CPT) 9
FY 1999 Charge
10
Amount of Charge
Mammaplasty
85.50, 85.32, 85.31
19325, 19324, 19318
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Mastopexy
85.60
19316
Inpatient Surgical Care
Per Diem
Or
APV or applicable
Outpatient Clinic Rate
(a b c)
Facial Rhytidectomy
86.82, 86.22
15824
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Blepharoplasty
08.70, 08.44
15820, 15821, 15822, 15823
Inpatient Surgical Care Per Diem Or
APV or applicable Outpatient Clinic Rate
(a b c)
Mentoplasty (Augmentation/Reduction)
76.68, 76.67
21208, 21209
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Abdominoplasty
86.83
15831
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Lipectomy suction per
region 11
86.83
15876, 15877, 15878, 15879
Inpatient Surgical Care
Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Rhinoplasty
21.87, 21.86
30400, 30410
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Scar Revisions beyond CHAMPUS
86.84
15785
Inpatient Surgical Care
Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Mandibular or Maxillary Repositioning
76.41
21194
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Minor Skin Lesions 12
86.30
15785
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Dermabrasion
86.25
15780
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Hair Restoration
86.64
15775
Inpatient Surgical Care Per Diem
Or
APV or applicable
Outpatient Clinic Rate
(a b c)
Removing Tattoos
86.25
15780
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Chemical Peel
86.24
15790
Inpatient Surgical Care Per Diem
Or
APV or applicable
Outpatient Clinic Rate
(a b c)
Arm/Thigh Dermolipectomy
86.83
15839
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
Brow Lift
86.3
15839
Inpatient Surgical Care Per Diem
Or
APV or applicable Outpatient Clinic Rate
(a b c)
H. Dental Rate 13 Per Procedure
MEPRS
Code 4
Clinical Service
International Military Education &
Training (IMET)
Interagency & Other Federal
Agency Sponsored Patients
Other (full/third party)
Dental Services, ADA code and DoD established weight
$56.00
$101.00
$108.00
I. Ambulance Rate 14 Per Visit
MEPRS
Code 4
Clinical Service
International Military Education &
Training (IMET)
Interagency & Other Federal
Agency Sponsored Patients
Other (full/third party)
FEA
Ambulance
$56.00
$101.00
$107.00
J. Ancillary Services Requested by an Outside Provider 8
Per Procedure
MEPRS
Code 4
Clinical Service
International Military
Education & Training (IMET)
Interagency & Other Federal
Agency Sponsored Patients
Other (full/third party)
Laboratory procedures requested by an outside provider CPT '98 Weight
Multiplier
$10.00
$17.00
$18.00
Radiology procedures requested by an outside provider CP '98 Weight
Multiplier
25.00
45.00
48.00
Cardiology procedures requested by an outside provider CPT '98 Weight
Multiplier
17.00
31.00
33.00
K. AirEvac Rate 15 Per Visit
MEPRS Code 4
Clinical Service
International Military
Education & Training (IMET)
Interagency & Other Federal
Agency Sponsored Patients
Other (full/third party)
AirEvac Services - Ambulatory
$90.00
$161.00
$172.00
AirEvac Services - Litter
256.00
459.00
489.00
Observation Rate 16 Per hour
MEPRS
Code 4
Clinical Service
International Military Education &
Training (IMET)
Interagency & Other Federal
Agency Sponsored Patients
Other (full/third party)
Observation Services Hour
$14.50
$25.83
$27.50
Notes on Cosmetic Surgery Charges
a Per diem charges for inpatient surgical care services are listed in
Section I.B. (See notes 9
through 11, below, for further details on reimbursable rates.)
b Charges for ambulatory procedure visits (formerly same day surgery)
are listed in Section III.C.
(See notes 9 through 11, below, for further details on reimbursable rates.) The ambulatory
procedure visit (APV) rate is used if the elective cosmetic surgery is performed in an ambulatory
procedure unit (APU).
c Charges for outpatient clinic visits are listed in Sections II.A-K. The
outpatient clinic rate is not
used for services provided in an APU. The APV rate should be used in these cases.
Notes on Reimbursable Rates
1 Percentages can be applied when preparing bills for both inpatient and
outpatient services.
Pursuant to the provisions of 10 U.S.C. 1095, the inpatient Diagnosis Related Groups and
inpatient per diem percentages are 96 percent hospital and 4 percent professional charges. The
outpatient per visit percentages are 89 percent outpatient services and 11 percent professional
charges.
2 DoD civilian employees located in overseas areas shall be rendered a
bill when services are performed. Payment is due 60 days from the date of the bill.
3 The cost per Diagnosis Related Group (DRG) is based on the inpatient
full reimbursement rate
per hospital discharge, weighted to reflect the intensity of the principal and secondary diagnoses,
surgical procedures, and patient demographics involved. The adjusted standardized amounts
(ASA) per Relative Weighted Product (RWP) for use in the direct care system is comparable to
procedures used by the Health Care Financing Administration (HCFA) and the Civilian Health
and Medical Program for the Uniformed Services (CHAMPUS). These expenses include all
direct care expenses associated with direct patient care. The average cost per RWP for large
urban, other urban/rural, and overseas will be published annually as an adjusted standardized
amount (ASA) and will include the cost of inpatient professional services. The DRG rates will
apply to reimbursement from all sources, not just third party payers.
4 The Medical Expense and Performance Reporting System (MEPRS)
code is a three digit code
which defines the summary account and the sub account within a functional category in the DoD
medical system. MEPRS codes are used to ensure that consistent expense and operating
performance data is reported in the DoD military medical system. An example of the MEPRS
hierarchical arrangement follows:
MEPRS CODE
Outpatient Care (Functional Category) B Medical Care (Summary Account) BA Internal Medicine (Subaccount) BAA
5 Hyperbaric services charges shall be based on hours of service in 15
minute increments. The
rates listed in Section III.B. are for 60 minutes or 1 hour of service. Providers shall calculate the
charges based on the number of hours (and/or fractions of an hour) of service. Fractions of an
hour shall be rounded to the next 15 minute increment (e.g., 31 minutes shall be charged as 45
minutes).
6 Ambulatory procedure visit is defined in DOD Instruction 6025.8,
"Ambulatory Procedure Visit
(APV)," dated September 23, 1996, as immediate (day of procedure) pre-procedure and
immediate post-procedure care requiring an unusual degree of intensity and provided in an
ambulatory procedure unit (APU). Care is required in the facility for less than 24 hours. This
rate is also used for elective cosmetic surgery performed in an APU.
7 Prescription services requested by outside providers (e.g., physicians
or dentists) are relevant to
the Third Party Collection Program. Third party payers (such as insurance companies) shall be
billed for prescription services when beneficiaries who have medical insurance obtain
medications from a Military Treatment Facility (MTF) that are prescribed by providers external
to the MTF. Eligible beneficiaries (family members or retirees with medical insurance) are not
personally liable for this cost and shall not be billed by the MTF. Medical Services Account
(MSA) patients, who are not beneficiaries as defined in 10 U.S.C. 1074 and 1076, are charged at
the "Other" rate if they are seen by an outside provider and only come to the MTF for
prescription services. The standard cost of medications ordered by an outside provider includes
the cost of the drugs plus a dispensing fee per prescription. The prescription cost is calculated by
multiplying the number of units (e.g., tablets or capsules) by the unit cost and adding a $5.00
dispensing fee per prescription. Final rule 32 CFR Part 220 eliminates the high cost ancillary
services' dollar threshold and the associated term "high cost ancillary service." The phrase "high
cost ancillary service" will be replaced with the phrase "ancillary services requested by an
outside provider" on publication of final rule 32 CFR Part 220. The elimination of the threshold
also eliminates the need to bundle costs whereby a patient is billed if the total cost of ancillary
services in a day (defined as 0001 hours to 2400 hours) exceeded $25.00. The elimination of the
threshold is effective as per date stated in final rule 32 CFR Part 220.
8 Charges for ancillary services requested by an outside provider
(physicians, dentists, etc.) are
relevant to the Third Party Collection Program. Third party payers (such as insurance
companies) shall be billed for ancillary services when beneficiaries who have medical insurance
obtain services from the MTF that are prescribed by providers external to the MTF. Laboratory
and Radiology procedure costs are calculated by multiplying the DoD established weight for the
Physicians' Current Procedural Terminology (CPT '98) code by either the cardiology, laboratory
or radiology multiplier (Section III.J). Eligible beneficiaries (family members or retirees with
medical insurance) are not personally liable for this cost and shall not be billed by the MTF.
MSA patients, who are not beneficiaries as defined by 10 U.S.C. 1074 and 1076, are
charged at
the "Other" rate if they are seen by an outside provider and only come to the MTF for ancillary
services. Final rule 32 CFR Part 220 eliminates the high cost ancillary services' dollar threshold
and the associated term "high cost ancillary service." The phrase "high cost ancillary service"
will be replaced with the phrase "ancillary services requested by an outside provider" on
publication of final rule 32 CFR Part 220. The elimination of the threshold also eliminates the
need to bundle costs whereby a patient is billed if the total cost of ancillary services in a day
(defined as 0001 hours to 2400 hours) exceeded $25.00. The elimination of the threshold is
effective as per date stated in final rule 32 CFR Part 220.
9 The attending physician is to complete the CPT '98 code to indicate
the appropriate procedure
followed during cosmetic surgery. The appropriate rate will be applied depending on the
treatment modality of the patient: ambulatory procedure visit, outpatient clinic visit or inpatient
surgical care services.
10 Family members of active duty personnel, retirees and their family
members, and survivors
shall be charged elective cosmetic surgery rates. Elective cosmetic surgery procedure
information is contained in Section III.G. The patient shall be charged the rate as specified in the
FY 1999 reimbursable rates for an episode of care. The charges for elective cosmetic surgery are
at the full reimbursement rate (designated as the "Other" rate) for inpatient per diem surgical care
services in Section I.B., ambulatory procedure visits as contained in Section III.C, or the
appropriate outpatient clinic rate in Sections II.A-K. The patient is responsible for the cost of the
implant(s) and the prescribed cosmetic surgery rate. (Note: The implants and procedures used
for the augmentation mammaplasty are in compliance with Federal Drug Administration
guidelines.)
11 Each regional lipectomy shall carry a separate charge. Regions
include head and neck, abdomen, flanks, and hips.
12 These procedures are inclusive in the minor skin lesions. However,
CHAMPUS separates them as noted here. All charges shall be for the entire treatment,
regardless of the number of visits required.
13 Dental service rates are based on a dental rate multiplier times the
American Dental Association (ADA) code and the DoD established weight for that code.
14 Ambulance charges shall be based on hours of service in 15 minute
increments. The rates
listed in Section III.I are for 60 minutes or 1 hour of service. Providers shall calculate the
charges based on the number of hours (and/or fractions of an hour) that the ambulance is logged
out on a patient run. Fractions of an hour shall be rounded to the next 15 minute increment (e.g.,
31 minutes shall be charged as 45 minutes).
15 Air in-flight medical care reimbursement charges are determined by
the status of the patient (ambulatory or litter) and are per patient. The appropriate charges are
billed only by the Air Force Global Patient Movement Requirement Center (GPMRC).
16 Observation Services are billed at either the hourly or daily charge.
Begin
counting when the
patient is placed in the observation bed, and round to the nearest hour. The daily rate for
full/third party, for example, would be $660 based on 24 hours of service. If a patient status
changes to inpatient, the charges for observation services are added to the DRG assigned to the
case and not billed separately. If a patient is released from Observation status and is sent to an
APV, the charges for Observation services are not billed separately, but are added to the APV
rate in order to recover all expenses.
1. Department of Health and Human Services
For the Department of Health and Human Services, Indian Health Service, effective
October 1, 1998 and thereafter:
Hospital Care Inpatient Day
General Medical Care:
Alaska
$1,798
Rest of the United States
1,049
Outpatient Medical Treatment
Outpatient Visit:
Alaska
$360
Rest of the United States
210
For the period beginning October 1, 1998, the rates prescribed herein superseded those
established by the Director of the Office of Management and Budget October 31, 1997
(61 FR 56360).
Jacob Lew Director, Office of Management and Budget