Common use of Rebase Clause in Contracts

Rebase. Effective July 1, 2013, the State implemented a new DRG schedule updating the core pieces that affect hospital payments. Goals of the State regarding this change included the following: • Reduce the frequency of outlier payments to be consistent with the intent of prospective payment systems. • More appropriately reimburse for the following types of services/facilities: ─ Rural Facilities. ─ Deliveries. ─ Psychiatric Care. ─ Care for Kids — Impacts Children's Hospitals. In order to estimate the impact of this program change to the ABD <21 population, Mercer relied upon analysis by its subcontractor, ▇▇▇▇▇ and Associates, for an estimate of the impact to the Inpatient COS by rating region. When evaluating the impact of the DRG rebase, the above adjustment should be considered, along with the other inpatient-related prospective program changes described later in this section, and the MCP inpatient pricing targets described in Enclosure 4.

Rebase. Effective July 1, 2013, the State implemented a new DRG schedule updating the core pieces that affect hospital payments. Goals of the State regarding this change included the following: • Reduce the frequency of outlier payments to be consistent with the intent of prospective payment systems. • More appropriately reimburse for the following types of services/facilities: ─ Rural Facilities. ─ Deliveries. ─ Psychiatric Care. ─ Care for Kids — Impacts Children's Hospitals. In order to estimate the impact of this program change to the ABD <21 population, Mercer ▇▇▇▇▇▇ relied upon analysis by its subcontractor, ▇▇▇▇▇ and Associates, for an estimate of the impact to the Inpatient COS by rating region. When evaluating the impact of the DRG rebase, the above adjustment should be considered, along with the other inpatient-related prospective program changes described later in this section, and the MCP inpatient pricing targets described in Enclosure 4.