CMS to delay implementation of outpatient payment rule

    Implementation of the 2002 hospital outpatient prospective payment system rates, set to be in effect on January 1, 2002,  will be delayed by the Centers for Medicare and Medicaid.  CMS will review the rates and codes announced in November of 2001.  Since issuing the November regulation, CMS has discovered a number of technical errors in the assignment of the cost of certain new technology devices related to procedure codes.  Once the corrections are made, CMS will do a complete review of all outpatient codes with medical experts and again review the data to avoid further calculation errors.

     "Our goal is to provide the best service possible to Medicare beneficiaries, hospitals and doctors, and we believe this action will help CMS meet that goal," states HHS Secretary Tommy G. Thompson.

     Hospitals will continue to be paid for outpatient services they provide to Medicare beneficiaries at the 2001 rates until CMS has completed the review.  The review should be completed by March 31, 2002.