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Advising the Congress on Medicare issues
MedPAC > Recommendations > Improving Medicare’s payments for inpatient care and for teaching hospitals (B)

Improving Medicare’s payments for inpatient care and for teaching hospitals (B)

June 1, 2000

The Congress should amend the law to change the method now used to finance outlier payments under the hospital inpatient prospective payment system. Projected outlier payments in each DRG should be financed through an offsetting adjustment to the relative weight for the category, rather than the current flat adjustment to the national average base payment amounts.

Topics: Hospital.