42 C.F.R. § 412.316 Geographic adjustment factors.
Title 42 - Public Health
Link to an amendment published at 71 FR 48140, Aug. 18, 2006. (a) Local cost variation. CMS adjusts for local cost variation based on the hospital wage index value that is applicable to the hospital under §412.63(k). The adjustment factor equals the hospital wage index value applicable to the hospital raised to the .6848 power and is applied to 100 percent of the Federal rate. (b) Large urban location. CMS provides an additional payment to a hospital located in a large urban area equal to 3.0 percent of what would otherwise be payable to the hospital based on the Federal rate. (1) For discharges occurring on or before September 30, 2004, the payment adjustment under this section is based on a hospital's location for the purpose of receiving payment under §412.63(a). The term “large urban area” is defined under §412.63(c)(6). (2) For discharges occurring on or after October 1, 2004, the definition of large urban area under §412.63(c)(6) continues to be in effect for purposes of the payment adjustment under this section, based on the geographic classification under §412.64. (c) Cost-of-living adjustment. CMS provides an additional payment to a hospital located in Alaska and Hawaii equal to [.3152×(the cost-of-living adjustment factor used to determine payments under §412.115−1)] percent. [56 FR 43449, Aug. 30, 1991, Aug. 11, 2004, as amended at 69 FR 49250, Aug. 11, 2004]
Title 42: Public Health
PART 412—PROSPECTIVE PAYMENT SYSTEMS FOR INPATIENT HOSPITAL SERVICES
Subpart M—Prospective Payment System for Inpatient Hospital Capital Costs
Basic Methodology for Determining the Federal Rate for Capital-Related Costs
§ 412.316 Geographic adjustment factors.
