Supporting Statement Part B

Supporting Statement – Part B
Collections of Information Employing Statistical Methods
1.

There are currently approximately 3,600 hospitals that are being paid under the
IPPS and 400 hospitals being paid under the LTCH PPS. Because there is a lag
in time using a cost-to-charge ratio from the latest tentatively settled or final
settled cost report, it is very difficult to accurately predict how many hospitals will
make this request. As stated in the June 9, 2003 Federal Register final rule, we
expected 120 hospitals to request a change to their cost-to-charge ratio by
presenting substantial evidence. However, since that time we have had
approximately 10 IPPS requests and 8 LTCH PPS requests per year.

2.

Hospitals can submit an array of data and information when requesting an
update to their cost-to-charge ratio. The data submitted by the hospitals should
be accurate and justify the necessity for an adjustment to the hospitals cost-tocharge ratio.

3.

As stated above, hospitals will submit this data when they feel an adjustment is
necessary and therefore this does not apply.

4.

No testing will apply. The fiscal intermediary (FI) or A/B Medicare Administrative
Contractor (MAC) and CMS regional office (RO) must approve the data and
reasoning submitted by the hospitals for an adjustment to its cost-to-charge ratio.

5.

Any FI, A/B MAC or RO can be part of this process.