81_FR_69140 81 FR 68947 - Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year 2017 Rates; Quality Reporting Requirements for Specific Providers; Graduate Medical Education; Hospital Notification Procedures Applicable to Beneficiaries Receiving Observation Services; Technical Changes Relating to Costs to Organizations and Medicare Cost Reports; Finalization of Interim Final Rules With Comment Period on LTCH PPS Payments for Severe Wounds, Modifications of Limitations on Redesignation by the Medicare Geographic Classification Review Board, and Extensions of Payments to MDHs and Low-Volume Hospitals; Correction

81 FR 68947 - Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year 2017 Rates; Quality Reporting Requirements for Specific Providers; Graduate Medical Education; Hospital Notification Procedures Applicable to Beneficiaries Receiving Observation Services; Technical Changes Relating to Costs to Organizations and Medicare Cost Reports; Finalization of Interim Final Rules With Comment Period on LTCH PPS Payments for Severe Wounds, Modifications of Limitations on Redesignation by the Medicare Geographic Classification Review Board, and Extensions of Payments to MDHs and Low-Volume Hospitals; Correction

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 81, Issue 193 (October 5, 2016)

Page Range68947-68963
FR Document2016-24042

This document corrects technical and typographical errors in the final rule that appeared in the August 22, 2016 Federal Register titled ``Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year 2017 Rates; Quality Reporting Requirements for Specific Providers; Graduate Medical Education; Hospital Notification Procedures Applicable to Beneficiaries Receiving Observation Services; Technical Changes Relating to Costs to Organizations and Medicare Cost Reports; Finalization of Interim Final Rules With Comment Period on LTCH PPS Payments for Severe Wounds, Modifications of Limitations on Redesignation by the Medicare Geographic Classification Review Board, and Extensions of Payments to MDHs and Low-Volume Hospitals.''

Federal Register, Volume 81 Issue 193 (Wednesday, October 5, 2016)
[Federal Register Volume 81, Number 193 (Wednesday, October 5, 2016)]
[Rules and Regulations]
[Pages 68947-68963]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24042]



[[Page 68947]]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Parts 405, 412, 413, and 489

[CMS-1655-F; CMS-1664-F; CMS-1632-F2]
RIN 0938-AS77; 0938-AS88; 0938-AS41


Medicare Program; Hospital Inpatient Prospective Payment Systems 
for Acute Care Hospitals and the Long-Term Care Hospital Prospective 
Payment System and Policy Changes and Fiscal Year 2017 Rates; Quality 
Reporting Requirements for Specific Providers; Graduate Medical 
Education; Hospital Notification Procedures Applicable to Beneficiaries 
Receiving Observation Services; Technical Changes Relating to Costs to 
Organizations and Medicare Cost Reports; Finalization of Interim Final 
Rules With Comment Period on LTCH PPS Payments for Severe Wounds, 
Modifications of Limitations on Redesignation by the Medicare 
Geographic Classification Review Board, and Extensions of Payments to 
MDHs and Low-Volume Hospitals; Correction

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Final rule; correction.

-----------------------------------------------------------------------

SUMMARY: This document corrects technical and typographical errors in 
the final rule that appeared in the August 22, 2016 Federal Register 
titled ``Medicare Program; Hospital Inpatient Prospective Payment 
Systems for Acute Care Hospitals and the Long-Term Care Hospital 
Prospective Payment System and Policy Changes and Fiscal Year 2017 
Rates; Quality Reporting Requirements for Specific Providers; Graduate 
Medical Education; Hospital Notification Procedures Applicable to 
Beneficiaries Receiving Observation Services; Technical Changes 
Relating to Costs to Organizations and Medicare Cost Reports; 
Finalization of Interim Final Rules With Comment Period on LTCH PPS 
Payments for Severe Wounds, Modifications of Limitations on 
Redesignation by the Medicare Geographic Classification Review Board, 
and Extensions of Payments to MDHs and Low-Volume Hospitals.''

DATES: This correction is effective October 1, 2016.

FOR FURTHER INFORMATION CONTACT: Donald Thompson, (410) 786-4487.

SUPPLEMENTARY INFORMATION: 

I. Background

    In FR Doc. 2016-18476 of August 22, 2016 (81 FR 56761) there were a 
number of technical and typographical errors identified and corrected 
in the Correction of Errors section of this correcting document. The 
provisions in this correcting document are effective as if they had 
been included in the document that appeared in the August 22, 2016 
Federal Register. Accordingly, the corrections are effective October 1, 
2016.

II. Summary of Errors

A. Summary of Errors in the Preamble

    On page 56775, we made a typographical error in stating the cost 
reduction.
    On page 56796, we are correcting errors and inadvertent omissions 
in the summary and response to a comment on the assignment of 18 
additional diagnosis codes.
    On page 56797, we erroneously referred to the wrong table.
    On page 56801, we are correcting errors and inadvertent omissions 
in our response to comments on our proposal to redesignate four ICD-10-
PCS procedure codes.
    On page 56803 and in the table on page 56804 describing ICD-10-PCS 
Endovascular Thrombectomy Procedure Codes Reassigned to MS-DRGs 270, 
271, and 272 for FY 2017, we are correcting technical errors in our 
discussion in response to comments to remove 34 ICD-10-PCS procedure 
codes describing endovascular thrombectomy of non-lower limbs from the 
proposed list of codes to be reassigned to MS-DRGs 270, 271 and 272. In 
this response, we erroneously referred to 34 procedure codes describing 
non-lower limb procedures (as included in the list submitted by the 
commenter) rather than 32 non-lower limb procedure codes. Two of the 34 
procedure codes identified by the commenter, ICD-10-PCS procedure codes 
04CT3ZZ (Extirpation of matter from right peroneal artery, percutaneous 
approach) and 04CU3ZZ (Extirpation of matter from left peroneal artery, 
percutaneous approach), describe endovascular thrombectomy of lower 
limbs. These codes are assigned to MS-DRGs 270, 271 and 272, accurately 
replicating the logic of ICD-9-CM MS-DRGs Version 32 and supporting 
clinical and resource use homogeneity as originally proposed and in 
accordance with the finalized policy to add procedures describing 
endovascular thrombectomy of lower limbs to ICD-10 Version 34 MS-DRGS 
270, 271 and 272.
    On page 56804, as a result of our correction of the MS-DRG 
assignment in Table 6B--New Procedure Codes for 13 ICD-10-PCS procedure 
codes that describe endovascular thrombectomy procedures of the lower 
limb, as described in section II.D. of this correction document, we are 
making additional conforming corrections to the table describing ICD-
10-PCS Endovascular Thrombectomy Procedure Codes Reassigned to MS-DRGs 
270, 271, and 272 for FY 2017.
    On pages 56821 and 56823, we erroneously stated there were 58 
additional combination codes for removal and replacement of knee 
joints. There were 57 additional combination codes.
    On pages 56822 and 56823, we erroneously listed the code number for 
(Replacement of Left Knee Joint, Femoral Surface with Synthetic 
Substitute, Cemented, Open Approach) as code 0SRU0JA three times within 
the table. The correct code number should be 0SRU0J9 (Replacement of 
Left Knee Joint, Femoral Surface with Synthetic Substitute, Cemented, 
Open Approach).
    As a result of the corrections to pages 56803, 56804, 56821, 56822, 
and 56823, we have made conforming changes to the ICD-10 MS-DRG 
Definitions Manual Version 34 and ICD-10 MS-DRG Grouper Software 
Version 34 for FY 2017.
    On page 56858, we erroneously omitted MS-DRG 265 from the table of 
MS-DRGs subject to the policy for replaced devices offered without cost 
or with a credit.
    On pages 56895 and 56897, we inadvertently made an error to the 
title of ICD-10-PCS procedure code XW03331 and omitted an additional 
procedure code that describes Idarucizumab. Cases involving 
Idarucizumab that are eligible for new technology add-on payments will 
be identified by ICD-10-PCS procedure codes XW03331 (Introduction of 
Idarucizumab, Dabigatran reversal agent into peripheral vein, 
percutaneous approach, New Technology Group 1) and XW04331 
(Introduction of Idarucizumab, Dabigatran reversal agent into central 
vein, percutaneous approach, New Technology Group 1).
    On page 56927, as a result of the correction of the technical 
errors described in section II.B of this correction document, we have 
made conforming changes to the following: The number of hospitals 
approved for wage index reclassifications by the Medicare Geographic 
Classification Review Board (MGCRB) starting in FY 2017 and the number 
of hospitals in a

[[Page 68948]]

MGCRB reclassification status for FY 2017.
    On page 57002 in the table titled, ``Previously Adopted and Newly 
Finalized Baseline and Performance Periods for the FY 2021 Program 
Year'' we erroneously repeated the same information three times, and in 
the first instance provided incorrect performance period years for the 
Mortality (MORT-30-AMI, MORT-30-HF, MORT-30-COPD) and THA/TKA measures.
    On page 57033, we made a typographical error and omitted a dash 
within the web link address creating a non-functional link.
    On pages 57195, 57196, 57199, 57211, 57213, 57218, and 57220 
through 57223 we inadvertently made technical and typographical errors 
to the Long-Term Care Hospital Quality Reporting Program section and 
have corrected those errors for clarification.

B. Summary of Errors in the Addendum

    As discussed in section II.D. of this correcting document, we made 
technical errors with regard to the calculation of Factor 3 of the 
uncompensated care payment methodology. The revisions made to address 
some of these errors directly affected and required the recalculation 
of all the budget neutrality factors and final outlier threshold. 
Factor 3 is used to determine the amount of total uncompensated care 
payment a hospital is eligible to receive as well as the amount of the 
uncompensated care payment a hospital receives per discharge. Per 
discharge uncompensated care payments are then included when 
determining total payments for purposes of all of the budget neutrality 
factors and the final outlier threshold. Therefore, we made conforming 
changes to pages 57278 through 57280, 57286, and 57291 to take into 
account the updated per-discharge uncompensated care payments 
determined using revised Factor 3 amounts. We made further conforming 
corrections to the national outlier adjustment factors on page 57286 
and the table on page 57288 as a result of these changes. Finally, we 
made conforming corrections to the national operating standardized 
amounts.
    We made inadvertent errors related to the MGCRB reclassification 
status of one provider as well as the status of three providers 
reclassified as urban to rural under section 1886(d)(8)(E) of the Act 
(codified in the regulations under Sec.  412.103 and hereinafter 
referred to as Sec.  412.103).
    Specifically, the reclassification status in the FY 2017 IPPS/LTCH 
PPS final rule did not properly reflect the following:
     Withdrawal of a MGCRB reclassification for FY 2017 for one 
provider.
     Application of urban to rural reclassification under Sec.  
412.103 for three providers.
    Therefore, on page 57279, we recalculated the reclassification 
hospital budget neutrality adjustment.
    The reclassification errors also required the recalculation of 
additional budget neutrality adjustment factors, the fixed-loss cost 
threshold, the final wage indexes, and the national operating 
standardized amounts. Therefore, we made conforming changes to the 
following:
     On page 57280, the rural floor budget neutrality 
adjustment and the wage index transition budget neutrality adjustment.
     On page 57286, the calculation of the outlier fixed-loss 
cost threshold and the national outlier adjustment factors.
     On page 57288, the table titled ``Change of FY 2016 
Standardized Amounts to the FY 2017 Standardized Amounts''.
    On pages 57291 and 57293 through 57295, in our discussion of the 
determination of the Federal hospital inpatient capital related 
prospective payment rate update, we have made conforming corrections to 
the increase in the capital Federal rate, the incremental and 
cumulative budget neutrality adjustment factors for changes in the GAFs 
and the MS-DRG relative weights, the GAF/MS-DRG budget neutrality 
adjustment factor (due to the errors in our calculation of the GAFs, 
which are computed from the wage index), the capital Federal rate, and 
the outlier threshold (as discussed previously).
    Also, as a result of these errors, on pages 57294 and 57295, we 
have made conforming corrections in the tables showing the comparison 
of factors and adjustments for the FY 2016 capital Federal rate and FY 
2017 capital Federal rate and the proposed FY 2017 capital Federal rate 
and final FY 2017 capital Federal rate.
    On page 57307, we are making conforming corrections the fixed-loss 
amount for site neutral discharges due to corrections in the IPPS rates 
and factors discussed previously.
    On page 57312, we have made conforming corrections to the national 
operating standardized amounts and capital standard Federal payment 
rate (which also include the rates payable to hospitals located in 
Puerto Rico) in Tables 1A, 1B, 1C, and 1D as a result of the conforming 
corrections to certain budget neutrality factors and the outlier 
threshold (as described previously).

C. Summary of Errors in the Appendices

    On pages 57312, 57315 through 57317, 57319 through 57323, 57330 
through 57332 in our regulatory impact analyses, we made conforming 
corrections to the factors, values, and tables and accompanying 
discussion of the changes in operating and capital IPPS payments for FY 
2017 and the effects of certain budget neutrality factors as a result 
of the technical errors that lead to conforming changes in our 
calculation of the operating and capital IPPS budget neutrality 
factors, outlier threshold, final wage indexes, operating standardized 
amounts, and capital Federal rate (as described in section II.B. of 
this correction document).
    On pages 57324 through 57326, in the table titled ``Modeled 
Disproportionate Share Hospital Payments for Estimated FY 2017 DSHs by 
Hospital Type: Model DSH $ (In Millions) From FY 2016 To FY 2017'' and 
the accompanying discussion, we made corrections to address technical 
and formatting errors in the estimated impacts resulting from 
inadvertent errors in the calculation of Factor 3 for certain 
hospitals.
    On pages 57331 through 57332, we made conforming corrections to 
Table III--Comparison of Total Payments Per Case [FY 2016 Payments 
Compared to FY 2017 Payments].
    On page 57342, we made conforming corrections to the discussion of 
the estimated changes in operating and capital IPPS payments and the 
accounting statement and table for acute care hospitals that arose from 
the corrections of errors and conforming changes as described in 
sections II.B. and II.D. of this correcting document.

D. Summary of Errors in and Corrections to Files and Tables Posted on 
the CMS Web Site

    We are correcting the errors in the following IPPS tables that are 
listed on page 57311 of the FY 2017 IPPS/LTCH PPS final rule and are 
available on the Internet on the CMS Web site at https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/FY2017-IPPS-Final-Rule-Home-Page.html. The tables that are available on the 
Internet have been updated to reflect the revisions discussed in this 
correcting document.
    Table 2--Case-Mix Index and Wage Index Table--FY 2017. Because the 
uncompensated care and reclassification errors discussed in section 
II.B. of this correction document required that we recalculate the 
rural and imputed floor budget neutrality factor, we are

[[Page 68949]]

correcting the values in the column titled FY 2017 Wage Index for all 
providers. For the three providers for which we are applying urban to 
rural reclassification under Sec.  412.103, we are correcting the 
values in the column titled ``FY 2017 Wage Index'', inserting the rural 
reclassified CBSA in the column titled ``Reclassified/Redesignated 
CBSA'', and inserting a ``Y'' in the column titled ``Hospital 
Reclassified as Rural Under Section 1886(d)(8)(E) of the Act (Sec.  
412.103)''. For the provider that withdrew its MGCRB reclassification 
for FY 2017, we are revising the wage index in the column titled FY 
2017 Wage Index, and we are removing the MGCRB flag in the column 
titled MGCRB Reclass.
    Table 3--Wage Index Table by CBSA--FY 2017. Because the 
uncompensated care and reclassification errors discussed in section 
II.B. of this correction document required that we recalculate the 
rural and imputed floor budget neutrality factor, we are making 
corresponding changes to the wage indexes and GAFs of all CBSAs listed 
in Table 3. Specifically, we are correcting the values and flags in the 
columns titled ``Wage Index'', ``Reclassified Wage Index'', ``GAF'', 
``Reclassified GAF'', ``Pre-Frontier and/or Pre-Rural Floor Wage 
Index'' and ``Eligible for Rural Floor Wage Index''.
    Table 6B--New Procedure Codes for FY 2017. In Table 6B--New 
Procedure Codes, we inadvertently listed the incorrect MS-DRG 
assignment for 13 ICD-10-PCS procedure codes that describe endovascular 
thrombectomy procedures of the lower limb involving a bifurcation. We 
are correcting the MS-DRG assignment of these 13 ICD-10-PCS codes in 
Table 6B.
    Table 10--New Technology Add-On Payment Thresholds for Applications 
for FY 2018. We are correcting the thresholds in this table as a result 
of the corrections to the operating standardized amounts discussed in 
section II.B. of this correcting document.
    Table 18--FY 2017 Medicare DSH Uncompensated Care Payment Factor 3 
and Projected DSH Eligibility. For the FY 2017 IPPS/LTCH PPS final 
rule, we published a list of hospitals that we identified to be 
subsection (d) hospitals and subsection (d) Puerto Rico hospitals 
eligible to receive empirically justified Medicare DSH payment 
adjustments and uncompensated care payments for FY 2017. We also 
published, in the Supplemental Medicare DSH File located in the FY 2017 
IPPS/LTCH PPS final rule data files page at https://www.cms.gov/Medicare/Medicare-Feefor-Service-Payment/AcuteInpatientPPS/FY2017-IPPS-FinalRule-Home-Page-Items/FY2017-IPPSFinal-Rule-Data-Files.html, the 
data used to calculate each hospital's Factor 3, total uncompensated 
care payment, and estimated uncompensated care payment per discharge.
    Shortly after the publication of the FY2017 IPPS/LTCH PPS final 
rule, we discovered that, in calculating Factor 3 of the uncompensated 
care payment methodology, we had understated the low-income insured 
days of hospitals that merged after 2011 with one surviving provider 
number because we inadvertently excluded the low income insured days of 
acquired hospitals from the low income insured days used in the Factor 
3 calculation of surviving hospitals that were projected to receive 
Medicare DSH in FY 2017. In addition, we discovered that we had 
calculated a Factor 3 for hospitals that have ceased operations and 
erroneously calculated Factor 3 using Medicaid days reported on 
Worksheet S-3 instead of Worksheet S-2 of certain hospitals' FY 2013 
cost reports. We are revising Factor 3 for all hospitals to correct 
these errors. These corrections to the uncompensated care payments 
impacted the calculation of all the budget neutrality factors as well 
as the outlier fixed-loss cost threshold for outlier payments.
    In addition, we discovered that we had inadvertently excluded the 
Medicaid days from the 2011 cost report for a provider as well as the 
Medicaid days from the 2012 cost report for another provider from the 
calculation of Factor 3. Due to technical errors by our Medicare 
Administrative Contractors the Medicaid days from these cost reports 
were not included in the March 2016 update of HCRIS. We projected that 
both providers would be eligible to receive Medicare DSH in FY 2017. 
Accordingly, we are revising Factor 3 for all hospitals to reflect 
these Medicaid days; however, the impact of these revisions is too 
small to affect other aspects of the IPPS ratesetting, such as the 
calculation of the fixed-loss threshold for outlier payments.
    We are also correcting the errors in the following LTCH PPS table 
that is listed on page 57311 of the FY 2017 IPPS/LTCH PPS final rule 
and is available on the Internet on the CMS Web site at https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/LongTermCareHospitalPPS/index.html under the list item for regulation 
number CMS-1655-F. The table that is available on the Internet has been 
updated to reflect the revisions discussed in this correcting document.
    Table 11--MS-LTC-DRGs, Relative Weights, Geometric Average Length 
of Stay, Short Stay Outlier (SSO) Threshold, and ``IPPS Comparable 
Threshold'' for LTCH PPS Discharges Occurring from October 1, 2016 
through September 30, 2017. We are correcting this table by correcting 
typographical errors for MS-LTC-DRGs 627 and 658 in the columns titled 
``Relative Weight,'' ``Geometric Average Length of Stay,'' ``Short-Stay 
Outlier (SSO) Threshold,'' and ``IPPS Comparable Threshold.''

III. Waiver of Proposed Rulemaking and Delay in Effective Date

    We ordinarily publish a notice of proposed rulemaking in the 
Federal Register to provide a period for public comment before the 
provisions of a rule take effect in accordance with section 553(b) of 
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). However, we 
can waive this notice and comment procedure if the Secretary finds, for 
good cause, that the notice and comment process is impracticable, 
unnecessary, or contrary to the public interest, and incorporates a 
statement of the finding and the reasons therefore in the notice.
    Section 553(d) of the APA ordinarily requires a 30-day delay in the 
effective date of final rules after the date of their publication in 
the Federal Register. This 30-day delay in effective date can be 
waived, however, if an agency finds for good cause that the delay is 
impracticable, unnecessary, or contrary to the public interest, and the 
agency incorporates a statement of the findings and its reasons in the 
rule issued.
    We believe that this correcting document does not constitute a rule 
that would be subject to the APA notice and comment or delayed 
effective date requirements. This correcting document corrects 
technical and typographic errors in the preamble, addendum, payment 
rates, tables, and appendices included or referenced in the FY 2017 
IPPS/LTCH PPS final rule but does not make substantive changes to the 
policies or payment methodologies that were adopted in the final rule. 
As a result, this correcting document is intended to ensure that the 
information in the FY 2017 IPPS/LTCH PPS final rule accurately reflects 
the policies adopted in that final rule.
    In addition, even if this were a rule to which the notice and 
comment procedures and delayed effective date requirements applied, we 
find that there is good cause to waive such requirements. Undertaking 
further notice and comment procedures to incorporate the corrections in 
this document into the final rule or delaying the effective date would 
be contrary to the public interest because it is in the public's 
interest for providers to receive

[[Page 68950]]

appropriate payments in as timely a manner as possible, and to ensure 
that the FY 2017 IPPS/LTCH PPS final rule accurately reflects our 
policies. Furthermore, such procedures would be unnecessary, as we are 
not altering our payment methodologies or policies, but rather, we are 
simply implementing correctly the policies that we previously proposed, 
received comment on, and subsequently finalized. This correcting 
document is intended solely to ensure that the FY 2017 IPPS/LTCH PPS 
final rule accurately reflects these payment methodologies and 
policies. Therefore, we believe we have good cause to waive the notice 
and comment and effective date requirements.

IV. Correction of Errors

    In FR Doc. 2016-18476 of August 22, 2016 (81 FR 56761), we are 
making the following corrections:

A. Corrections of Errors in the Preamble

    1. On page 56775, third column, second bulleted paragraph, line 25, 
the figure ``$50.4 million'' is corrected to read ``$56.4 million''.
    2. On page 56796--
    a. Top half of the page, third column, third full paragraph,
    (1) Lines 4 and 5, the phrase ``describing similar conditions'' is 
corrected to read ``displayed in Table 6A--New Diagnosis Codes 
associated with the proposed rule (which is available via the Internet 
on the CMS Web site at: http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/index.html) that describe similar 
conditions''.
    (2) Lines 9 and 10, the phrase, ``18 ICD-10-CN diagnosis codes in 
the following table be reassigned'' is corrected to read ``18 ICD-10-CM 
diagnosis codes in the following table also be reassigned''.
    b. Lower half of the page, first column, last paragraph--
    (1) Lines 6 and 7, the phrase ``describing procedures performed 
on'' is corrected to read ``describing conditions affecting''.
    (2) Line 14, the phrase ``MS DRGs 091, 092 and 093.'' is corrected 
to read ``MS-DRGs 091, 092, and 093 because they are also nervous 
system codes.''
    3. On page 56797, first column, first paragraph, lines 15 and 16, 
the phrase ``These 18 codes also are reflected in Table 6E'' is 
corrected to read ``These 18 codes are reflected in Table 6A''.
    4. On page 56801, second column, second full paragraph--
    a. Lines 11 and 12, the phrase ``performing such procedures because 
loop'' is corrected to read ``performing such procedures because, as 
noted in the FY 2017 IPPS/LTCH PPS proposed rule, loop''.
    b. Lines 25 and 26, the phrase ``were not able to finalize that 
specific request.'' is corrected to read ``were not able to replicate 
that specific request in the ICD-9-CM based MS-DRGs.''.
    c. Lines 26 through 29, the sentence ``Rather, we finalized an 
alternative option, which was to change the designation for four of the 
six codes requested.'' is corrected to read ``Rather, we proposed an 
alternative option, which was to change the designation for four of the 
six codes requested, because we believed that if we limited the change 
in designation to these four codes, the change would not have any 
impact.''.
    d. Lines 40 through 41, the phrase ``not finalizing the proposal to 
change the two'' is corrected to read ``not changing the designation of 
the two''.
    5. On page 56803, bottom of the page--
    a. First column, last paragraph, lines 7 and 8, the phrase 
``removing the 34 codes'' is corrected to read ``removing 32 of the 34 
codes''.
    b. Second column, first partial paragraph--
    (1) Lines 5 and 6, the phrase ``34 non-lower'' is corrected to read 
``32 non-lower''.
    (2) Lines 8 and 9, the phrase ``These 34 non-lower'' is corrected 
to read ``These 32 non-lower''.
    (3) Line 13, after the phrase ``for FY 2017.'' the paragraph is 
corrected by adding sentences to read as follows:
    ``Two of the procedure codes identified by the commenter, ICD-10-
PCS procedure codes 04CT3ZZ (Extirpation of matter from right peroneal 
artery, percutaneous approach) and 04CU3ZZ (Extirpation of matter from 
left peroneal artery, percutaneous approach) describe endovascular 
thrombectomy of lower limbs and are not non-lower limb procedure 
codes.''.
    c. Third column, first full paragraph, line 11, the phrase ``34 
procedure'' is corrected to read ``32 procedure''.
    6. On page 56804, top of page, the table titled ``ICD-10-PCS 
ENDOVASCULAR THROMBECTOMY PROCEDURE CODES REASSIGNED TO MS-DRGs 270, 
271, AND 272 FOR FY 2017'' is corrected by adding the following 
entries:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
04CK3Z6...........................  Extirpation of Matter from Right
                                     Femoral Artery, Bifurcation,
                                     Percutaneous Approach.
04CL3Z6...........................  Extirpation of Matter from Left
                                     Femoral Artery, Bifurcation,
                                     Percutaneous Approach.
04CM3Z6...........................  Extirpation of Matter from Right
                                     Popliteal Artery, Bifurcation,
                                     Percutaneous Approach.
04CN3Z6...........................  Extirpation of Matter from Left
                                     Popliteal Artery, Bifurcation,
                                     Percutaneous Approach.
04CP3Z6...........................  Extirpation of Matter from Right
                                     Anterior Tibial Artery,
                                     Bifurcation, Percutaneous Approach.
04CQ3Z6...........................  Extirpation of Matter from Left
                                     Anterior Tibial Artery,
                                     Bifurcation, Percutaneous Approach.
04CR3Z6...........................  Extirpation of Matter from Right
                                     Posterior Tibial Artery,
                                     Bifurcation, Percutaneous Approach.
04CS3Z6...........................  Extirpation of Matter from Left
                                     Posterior Tibial Artery,
                                     Bifurcation, Percutaneous Approach.
04CT3Z6...........................  Extirpation of Matter from Right
                                     Peroneal Artery, Bifurcation,
                                     Percutaneous Approach.
04CT3ZZ...........................  Extirpation of Matter from Right
                                     Peroneal Artery, Percutaneous
                                     Approach.
04CU3Z6...........................  Extirpation of Matter from Left
                                     Peroneal Artery, Bifurcation,
                                     Percutaneous Approach.
04CU3ZZ...........................  Extirpation of Matter from Left
                                     Peroneal Artery, Percutaneous
                                     Approach.
04CV3Z6...........................  Extirpation of Matter from Right
                                     Foot Artery, Bifurcation,
                                     Percutaneous Approach.
04CW3Z6...........................  Extirpation of Matter from Left Foot
                                     Artery, Bifurcation, Percutaneous
                                     Approach.
04CY3Z6...........................  Extirpation of Matter from Lower
                                     Artery, Bifurcation, Percutaneous
                                     Approach.
------------------------------------------------------------------------

    7. On page 56821, middle of the page--
    a. Second column, first partial paragraph, line 2, the phrase 
``identified 58'' is corrected to read ``identified 57''.
    b. Third column, first partial paragraph, line 3, the phrase 
``following 58'' is corrected to read ``following 57''.
    8. On pages 56821 through 56823, in the table titled ``ICD-10-PCS 
CODE PAIRS PROPOSED TO BE ADDED TO VERSION 34 ICD-10 MS-DRGs 466, 467, 
and 468: PROPOSED NEW KNEE REVISION ICD-10-PCS COMBINATIONS'', the 
codes (in the 4th column) for the following entries are corrected to 
read as follows:

[[Page 68951]]



  ICD-10-PCS Code Pairs Proposed To Be Added to Version 34 ICD-10 MS-DRGs 466, 467, and 468: Proposed New Knee
                                        Revision ICD-10-PCS Combinations
----------------------------------------------------------------------------------------------------------------
           Code                Code description                         Code                Code description
----------------------------------------------------------------------------------------------------------------
0SPD08Z..................  Removal of Spacer from      and   0SRU0J9..................  Replacement of Left Knee
                            Left Knee Joint, Open                                        Joint, Femoral Surface
                            Approach.                                                    with Synthetic
                                                                                         Substitute, Cemented,
                                                                                         Open Approach.
0SPD38Z..................  Removal of Spacer from      and   0SRU0J9..................  Replacement of Left Knee
                            Left Knee Joint,                                             Joint, Femoral Surface
                            Percutaneous Approach.                                       with Synthetic
                                                                                         Substitute, Cemented,
                                                                                         Open Approach.
0SPD48Z..................  Removal of Spacer from      and   0SRU0J9..................  Replacement of Left Knee
                            Left Knee Joint,                                             Joint, Femoral Surface
                            Percutaneous Endoscopic                                      with Synthetic
                            Approach.                                                    Substitute, Cemented,
                                                                                         Open Approach.
----------------------------------------------------------------------------------------------------------------

    9. On page 56823, lower half of the page--
    a. First column, second paragraph, line 10, the phrase ``58 new'' 
is corrected to read ``57 new''.
    b. Second column--
    (1) First partial paragraph, line 11, the phrase ``58 new'' is 
corrected to read `` new''.
    (2) First full paragraph, lines 3 and 4, the phrase ``58 new'' is 
corrected to read ``57 new''.
    10. On page 56858, top of the page, the untitled table is corrected 
by adding the following entry after line 34 (which is the entry for MDC 
5, MS-DRG 262):

------------------------------------------------------------------------
            MDC                MS-DRG             MS-DRG Title
------------------------------------------------------------------------
5                                  265  AICD Lead Procedures.
------------------------------------------------------------------------

    11. On page 56895, third column, first partial paragraph--
    a. Lines 8 and 9, the phrase ``a unique ICD-10-PCS procedure code'' 
is corrected to read ``two unique ICD-10-PCS procedure codes''.
    b. Lines 10 through 15, the sentence ``The approved procedure code 
is XW0331 (Introduction of Idarucizumab, Dabigatran reversal agent into 
central vein, percutaneous approach, New Technology Group 1).'' is 
corrected to read ``The approved procedure codes are XW0331 
(Introduction of Idarucizumab, Dabigatran reversal agent into 
peripheral vein, percutaneous approach, New Technology Group 1) and 
XW04331 (Introduction of Idarucizumab, Dabigatran reversal agent into 
central vein, percutaneous approach, New Technology Group 1).''.
    12. On page 56897, third column, third full paragraph, line 11, the 
phrase ``procedure code XW03331.'' is corrected to read ``procedure 
codes XW03331 and XW04331.''.
    13. On page 56927--
    a. Second column, last partial paragraph, line 5 the phrase ``265 
hospitals'' is corrected to read ``264 hospitals''.
    b. Third column, first partial paragraph, line 12, the phrase ``817 
hospitals'' is corrected to read ``816 hospitals''.
    14. On page 57002, bottom of the page, the table titled 
``PREVIOUSLY ADOPTED AND NEWLY FINALIZED BASELINE AND PERFORMANCE 
PERIODS FOR THE FY 2021 PROGRAM YEAR'' is corrected to read as follows:

 Previously Adopted and Newly Finalized Baseline and Performance Periods
                      for the FY 2021 Program Year
------------------------------------------------------------------------
             Domain                 Baseline period   Performance period
------------------------------------------------------------------------
Clinical Care
 Mortality (MORT-30-AMI,   July 1,     July 1,
 MORT-30-HF, MORT-30-COPD) *       2011-June 30,       2016-June 30,
                                   2014.               2019
 THA/TKA *..............   April 1,    April 1,
                                   2011-March 31,      2016-March 31,
                                   2014.               2019
 MORT-30-PN (updated       July 1,     September
 cohort).                          2012-June 30,       1, 2017-June 30,
                                   2015.               2019
Efficiency and Cost Reduction
 MSPB...................   January     January
                                   1, 2017-December    1, 2019-December
                                   31, 2017.           31, 2019
 Payment (AMI Payment      July 1,     July 1,
 and HF Payment).                  2012-June 30,       2017-June 30,
                                   2015.               2019
------------------------------------------------------------------------
* Previously adopted baseline and performance periods that remain
  unchanged (80 FR 49562 through 49563).

    15. On page 57033, first column, last paragraph, lines 2 through 4, 
the web link ``http://www.cms.gov/Medicare/Medicare-Fee-for-ServicePayment/AcuteInpatientPPS/dgme.html'' is corrected to read 
``http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/dgme.html.''
    16. On page 57195--
    a. First column, last partial paragraph, lines 4 and 5, the phrase 
``it recommended'' is corrected to read ``the commenters recommended''.
    b. Third column, third full paragraph--
    (1). Line 14, the phrase ``This measure'' is corrected to read 
``The Drug Regimen Review Conducted with Follow-Up for Identified 
Issues-PAC LTCH QRP quality measure''.
    (2) Lines 23 through 25, the phrase `` and Potentially Preventable 
30-Day Post-Discharge Readmission Measure for LTCH QRP,'' is corrected 
to read ``, Potentially Preventable 30-Day Post-Discharge Readmission 
Measure for LTCH QRP and Medicare Spending Per Beneficiary-PAC LTCH 
QRP,''.
    17. On page 57196, third column, first full paragraph, lines 13 
through 16, the phrase ``with information more frequently, such as 
unadjusted counts of potentially preventable readmissions (PPRs) and 
discharge data.'' is corrected to read ``with information, such as 
unadjusted counts of potentially preventable readmissions (PPRs) and 
discharge data, more frequently.''
    18. On page 57199, first column, second full paragraph, lines 3 and 
4, the phrase ``SES or SDS status.'' is corrected to read ``SES or 
SDS.''
    19. On page 57211, third column, second full paragraph, line 16, 
the phrase ``to discharge'' is corrected to read ``to be discharged''.
    20. On page 57213--
    a. Second column, last partial paragraph, lines 6 through 8, the 
phrase

[[Page 68952]]

``and a SNF stay within a 30-day window, the SNF stay is a candidate to 
for'' is corrected to read ``and then a SNF stay within a 30-day 
window, the SNF stay is a candidate for''.
    b. Third column, after the last paragraph, Footnote 280, lines 1 
and 2, the measure name ``Hospital-Wide All-Cause Readmission Measure 
(HWR) (CMS/Yale).'' is corrected to read ``Hospital-Wide All-Cause 
Unplanned Readmission Measure (HWR) (CMS/Yale).''
    21. On page 57218, third column, first full paragraph, lines 4 and 
5, the phrase ``The commenter was correct in its interpretation of'' is 
corrected to read ``The commenter's interpretation was correct 
regarding''.
    22. On page 57220, second column, second footnoted full paragraph 
(Footnote 311), lines 1 through 6, the footnote ``\311\Greenwald, J.L., 
Halasyamani, L., Greene, J., LaCivita, C., et al. (2010). Making 
inpatient medication reconciliation patient centered, clinically 
relevant and implementable: A consensus statement on key principles and 
necessary first steps. Journal of Hospital Medicine, 5(8), 477-485.'' 
is corrected to read ``\311\Institute of Medicine. Preventing 
Medication Errors. Washington, DC: National Academies Press; 2006.''
    23. On page 57221, second column, second full paragraph, lines 3 
and 4, the phrase ``cross-setting and quality measure'' is corrected to 
read ``cross-setting quality measure''.
    24. On page 57222--
    a. Second column, first full paragraph, lines 11 and 12, the phrase 
``however, the adoption of the measure'' is corrected to read 
``however, the measure''.
    b. Third column, first full paragraph--
    (1) Line 4, the word ``facilities'' is corrected to read 
``facility's''.
    (2) Line 22, the phrase ``collected admission'' is corrected to 
read ``collected at admission''.
    25. On page 57223--
    a. First column, second paragraph--
    (1) Lines 1 through 4, the phrase ``Since the time of the MAP 
consideration, with our measure contractor, we tested this measure in a 
pilot test involving twelve PAC facilities,'' is corrected to read 
``Since the time of the NQF-convened MAP consideration we have further 
tested this measure in a pilot test involving twelve PAC facilities''.
    (2) Lines 7 and 8, the phrase, ``record collection system'' is 
corrected to read ``records system''.
    b. Second column, third full paragraph, lines 9 and 10, the phrase 
``PAC facility.'' is corrected to read ``PAC facility. We appreciate 
MedPAC and other commenters' recommendation for a quality measure that 
assesses post-discharge medication communication with primary care 
providers for patients discharged to home.''

B. Correction of Errors in the Addendum

    1. On page 57278, third column, fifth full paragraph,
    a. Line 3, the figure ``0.999079'' is corrected to read 
``0.999078''.
    b. Line 9, the figure ``0.999079'' is corrected to read 
``0.999078''.
    2. On page 57279--
    a. Second column, first full paragraph, line 9, the figure 
``1.000209'' is corrected to read ``1.00021''.
    b. Third column, third full paragraph, line 12, the figure 
``0.988224'' is corrected to read ``0.988136''.
    3. On page 57280--
    a. First column, fifth full paragraph, line 4, the figure 
``0.993200'' is corrected to read ``0.991987''.
    b. Third column, second full paragraph,
    (1) Line 3, the figure ``0.999994'' is corrected to read 
``0.999997''.
    (2) Line 6, the figure ``0.999994'' is corrected to read 
``0.999997''.
    4. On page 57286--
    a. Second column, last paragraph--
    (1) Line 6, the figure ``$23,570'' is corrected to read 
``$23,573''.
    (2) Line 8, the figure ``$83,347,416,971'' is corrected to read 
``$83,364,479,923''.
    (3) Line 9, the figure ``$4,479,256,519'' is corrected to read 
``$4,479,256,368''.
    b. Third column--
    (1) First partial paragraph, line 11, the figure ``$23,570'' is 
corrected to read ``$23,573''.
    (2) Following the third full paragraph, the untitled table is 
corrected to read as follows:

------------------------------------------------------------------------
                                             Operating
                                           standardized       Capital
                                              amounts      Federal rate
------------------------------------------------------------------------
National................................       0.948998        0.938602
------------------------------------------------------------------------

    5. On page 57288, middle of the page, the table titled ``CHANGE OF 
FY 2016 STANDARDIZED AMOUNTS TO THE FY 2017 STANDARDIZED AMOUNTS'', is 
corrected to read as follows:

                   Change of FY 2016 Standardized Amounts to the FY 2017 Standardized Amounts
----------------------------------------------------------------------------------------------------------------
                                                      Hospital submitted   Hospital did NOT    Hospital did NOT
                                  Hospital submitted   quality data and     submit quality      submit quality
                                   quality data and        is NOT a          data and is a     data and is NOT a
                                    is a meaningful     meaningful EHR      meaningful EHR      meaningful EHR
                                       EHR user              user                user                user
----------------------------------------------------------------------------------------------------------------
FY 2016 Base Rate after           If Wage Index is    If Wage Index is    If Wage Index is    If Wage Index is
 removing:                         Greater Than        Greater Than        Greater Than        Greater Than
1. FY 2016 Geographic              1.0000:             1.0000:             1.0000:             1.0000:
 Reclassification Budget          Labor (69.6         Labor (69.6         Labor (69.6         Labor (69.6
 Neutrality (0.988169).            percent):           percent):           percent):           percent):
2. FY 2016 Rural Community         $4,394.09..         $4,394.09..         $4,394.09..         $4,394.09.
 Hospital Demonstration Program   Nonlabor (30.4      Nonlabor (30.4      Nonlabor (30.4      Nonlabor (30.4
 Budget Neutrality (0.999837).     percent):           percent):           percent):           percent):
                                   $1,919.26..         $1,919.26..         $1,919.26..         $1,919.26.

[[Page 68953]]

 
3. Cumulative FY 2008, FY 2009,   If Wage Index is    If Wage Index is    If Wage Index is    If Wage Index is
 FY 2012, FY 2013, FY 2014, FY     less Than or        less Than or        less Than or        less Than or
 2015 and FY 2016 Documentation    Equal to 1.0000:    Equal to 1.0000:    Equal to 1.0000:    Equal to 1.0000:
 and Coding Adjustments as        Labor (62           Labor (62           Labor (62           Labor (62
 Required under Sections           percent):           percent):           percent):           percent):
 7(b)(1)(A) and 7(b)(1)(B) of      $3,914.28..         $3,914.28..         $3,914.28..         $3,914.28.
 Public Law 110-90 and            Nonlabor (38        Nonlabor (38        Nonlabor (38        Nonlabor (38
 Documentation and Coding          percent):           percent):           percent):           percent):
 Recoupment Adjustment as          $2,399.07..         $2,399.07..         $2,399.07..         $2,399.07.
 required under Section 631 of
 the American Taxpayer Relief
 Act of 2012 (0.9255).
4. FY 2016 Operating Outlier
 Offset (0.948998).
5. FY 2016 New Labor Market
 Delineation Wage Index
 Transition Budget Neutrality
 Factor (0.999998).
6. FY 2017 2-Midnight Rule
 Permanent Adjustment (1/0.998).
FY 2017 Update Factor...........  1.0165............  0.99625...........  1.00975...........  0.9895.
FY 2017 MS[dash]DRG               0.999078..........  0.999078..........  0.999078..........  0.999078.
 Recalibration Budget Neutrality
 Factor.
FY 2017 Wage Index Budget         1.00021...........  1.00021...........  1.00021...........  1.00021.
 Neutrality Factor.
FY 2017 Reclassification Budget   0.988136..........  0.988136..........  0.988136..........  0.988136.
 Neutrality Factor.
FY 2017 Operating Outlier Factor  0.948998..........  0.948998..........  0.948998..........  0.98998.
Cumulative Factor: FY 2008, FY    0.9118............  0.9118............  0.9118............  0.9118.
 2009, FY 2012, FY 2013, FY
 2014, FY 2015, FY 2016 and FY
 2017 Documentation and Coding
 Adjustment as Required under
 Sections 7(b)(1)(A) and
 7(b)(1)(B) of Public Law 110-90
 and Documentation and Coding
 Recoupment Adjustment as
 required under Section 631 of
 the American Taxpayer Relief
 Act of 2012.
FY 2017 New Labor Market          0.999997..........  0.999997..........  0.999997..........  0.999997.
 Delineation Wage Index 3-Year
 Hold Harmless Transition Budget
 Neutrality Factor.
FY 2017 2[dash]Midnight Rule One- 1.006.............  1.006.............  1.006.............  1.006.
 Time Prospective Increase.
National Standardized Amount for  Labor: $3,839.23..  Labor: $3,762.75..  Labor: $3,8143.74.  Labor: $3,737.25.
 FY 2017 if Wage Index is         Nonlabor:           Nonlabor:           Nonlabor:           Nonlabor:
 Greater Than 1.0000; Labor/Non-   $1,676.91.          $1,643.50.          $1,665.77.          $1,632.37.
 Labor Share Percentage (69.6/
 30.4).

[[Page 68954]]

 
National Standardized Amount for  Labor: $3,420.01..  Labor: $3,351.88..  Labor: $3,397.30..  Labor: $3,329.16.
 FY 2017 if Wage Index is less    Nonlabor:           Nonlabor:           Nonlabor:           Nonlabor:
 Than or Equal to 1.0000; Labor/   $2,096.13.          $2,054.37.          $2,082.21.          $2,040.46.
 Non-Labor Share Percentage (62/
 38).
----------------------------------------------------------------------------------------------------------------

    6. On page 57291--
    a. First column, second full paragraph, line 15, the figure 
``0.999079'' is corrected to read ``0.999078''.
    b. Third column, first full paragraph line 6, the figure ``1.84'' 
is corrected to read ``1.83''.
    7. On page 57293, third column--
    a. First partial paragraph--
    (1) Line 1, the figure ``0.9995'' is corrected to read ``0.9994''.
    (2) Line 4, ``0.9855'' is corrected to read ``0.9854''.
    b. First full paragraph, line 16, the figure ``0.9851'' is 
corrected to read ``0.9850''.
    c. Last paragraph--
    (1) Line 2, the figure ``0.9991''is corrected to read ``0.9990''.
    (2) Line 4, ``0.9995'' is corrected to read ``0.9994''.
    8. On page 57294--
    a. Top of the page--
    (1) Second column--
    (a) First full paragraph, line 17, the figure ``$446.81'' is 
corrected to read ``$446.79''.
    (b) Second bulleted paragraph, line 6, the figure ``0.9991'' is 
corrected to read ``0.9990''.
    (2) Third column, second full paragraph--
    (a) Line 13, the figure, ``0.09'' is corrected to read ``0.10''.
    (b) Line 26, the figure, ``1.84'' is corrected to read ``1.832''.
    b. Bottom of the page, the table titled ``COMPARISON OF FACTORS AND 
ADJUSTMENTS: FY 2016 CAPITAL FEDERAL RATE AND FY 2017 CAPITAL FEDERAL 
RATE'' is corrected to read as follows:

      Comparison of Factors and Adjustments: FY 2016 Capital Federal Rate and FY 2017 Capital Federal Rate
----------------------------------------------------------------------------------------------------------------
                                                                                                  Percent change
                                                      FY 2016         FY 2017         Change            \3\
----------------------------------------------------------------------------------------------------------------
Update Factor \1\...............................          1.0130           1.009           1.009             0.9
GAF/DRG Adjustment Factor \1\...................          0.9976          0.9990          0.9990           -0.10
Outlier Adjustment Factor \2\...................          0.9365          0.9386          1.0022            0.22
Permanent 2-midnight Policy Adjustment Factor...             N/A           1.002           1.002             0.2
One-Time 2-midnight Policy Adjustment Factor....             N/A           1.006           1.006             0.6
Capital Federal Rate............................         $438.75         $446.79          1.0183            1.83
----------------------------------------------------------------------------------------------------------------
\1\ The update factor and the GAF/DRG budget neutrality adjustment factors are built permanently into the
  capital Federal rates. Thus, for example, the incremental change from FY 2016 to FY 2017 resulting from the
  application of the 0.9990 GAF/DRG budget neutrality adjustment factor for FY 2017 is a net change of 0.9990
  (or -0.10 percent).
\2\ The outlier reduction factor is not built permanently into the capital Federal rate; that is, the factor is
  not applied cumulatively in determining the capital Federal rate. Thus, for example, the net change resulting
  from the application of the FY 2017 outlier adjustment factor is 0.9386/0.9365, or 1.0022 (or 0.22 percent).
\3\ Sum of individual changes may not match percent change in capital rate due to rounding.

    9. On page 57295--
    a. The top of the page, the table titled ``COMPARISON OF FACTORS 
AND ADJUSTMENTS: PROPOSED FY 2017 CAPITAL FEDERAL RATE AND FINAL FY 
2017 CAPITAL FEDERAL RATE'' is corrected to read as follows:

 Comparison of Factors and Adjustments: Proposed FY 2017 Capital Federal Rate and Final FY 2017 Capital Federal
                                                      Rate
----------------------------------------------------------------------------------------------------------------
                                                    Proposed FY
                                                       2017        Final FY 2017      Change      Percent change
----------------------------------------------------------------------------------------------------------------
Update Factor \1\...............................          1.0090          1.0090          1.0000            0.00
GAF/DRG Adjustment Factor \1\...................          0.9993          0.9990          0.9997           -0.03
Outlier Adjustment Factor \2\...................          0.9374          0.9386          1.0013            0.13
Permanent 2-midnight Policy Adjustment Factor...           1.002           1.002           1.000            0.00
One-Time 2-midnight Policy Adjustment Factor....           1.006           1.006           1.000            0.00
Capital Federal Rate............................         $446.35         $446.79          1.0010            0.10
----------------------------------------------------------------------------------------------------------------

    b. Lower three-fourths of the page, first column, second paragraph, 
line 21, the figure, ``$23,570.'' is corrected to read ``$23,573.''
    10. On page 57307, second column, first full paragraph--
    a. Line 15, the figure ``$23,570'' is corrected to read 
``$23,573''.
    b. Line 35, the figure ``$23,570'' is corrected to read 
``$23,573''.
    11. On page 57312--
    a. Top of the page--

[[Page 68955]]

    (1) Table 1A titled ``NATIONAL ADJUSTED OPERATING STANDARDIZED 
AMOUNTS, LABOR/NONLABOR (69.6 PERCENT LABOR SHARE/30.4 PERCENT NONLABOR 
SHARE IF WAGE INDEX IS GREATER THAN 1)--FY 2017'' is corrected to read 
as follows:

    Table 1A--National Adjusted Operating Standardized Amounts, Labor/Nonlabor (69.6 Percent Labor Share/30.4 Percent Nonlabor Share if Wage Index Is
                                                                Greater Than 1)--FY 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hospital submitted quality data and is   Hospital submitted quality data and  Hospital did NOT submit quality data  Hospital did NOT submit quality data
 a meaningful EHR user  (update = 1.65      is NOT a meaningful EHR user          and is a meaningful EHR user        and is NOT a meaningful EHR user
               percent)                       (update = -0.375 percent)             (update = 0.975 percent)              (update = -1.05 percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
       Labor             Nonlabor             Labor             Nonlabor            Labor             Nonlabor            Labor             Nonlabor
--------------------------------------------------------------------------------------------------------------------------------------------------------
       $3,839.23           $1,677.91          $3,762.75          $1,643.50          $3,813.74          $1,665.77          $3,737.25          $1,632.37
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) Table 1B titled ``NATIONAL ADJUSTED OPERATING STANDARDIZED 
AMOUNTS, LABOR/NONLABOR (62 PERCENT LABOR SHARE/38 PERCENT NONLABOR 
SHARE IF WAGE INDEX IS LESS THAN OR EQUAL TO 1)--FY 2017'' is corrected 
to read as follows:

 Table 1B--National Adjusted Operating Standardized Amounts, Labor/Nonlabor (62 Percent Labor Share/38 Percent Nonlabor Share if Wage Index Is Less Than
                                                                 or Equal to 1)--FY 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hospital submitted quality data and is   Hospital submitted quality data and  Hospital did NOT submit quality data  Hospital did NOT submit quality data
 a meaningful EHR user (update = 1.65   is NOT a meaningful EHR user (update  and is a meaningful EHR user (update    and is NOT a meaningful EHR user
               percent)                           = -0.375 percent)                     = 0.975 percent)                  (update = -1.05 percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
       Labor             Nonlabor             Labor             Nonlabor            Labor             Nonlabor            Labor             Nonlabor
--------------------------------------------------------------------------------------------------------------------------------------------------------
       $3,420.01           $2,096.13          $3,351.88          $2,054.37          $3,397.30          $2,082.21          $3,329.16          $2,040.46
--------------------------------------------------------------------------------------------------------------------------------------------------------

    b. Middle of the page--
    (1) Table 1C titled ``ADJUSTED OPERATING STANDARDIZED AMOUNTS FOR 
HOSPITALS IN PUERTO RICO, LABOR/NONLABOR (NATIONAL: 62 PERCENT LABOR 
SHARE/38 PERCENT NONLABOR SHARE BECAUSE WAGE INDEX IS LESS THAN OR 
EQUAL TO 1);--FY 2017'' is corrected to read as follows:

  Table 1C--Adjusted Operating Standardized Amounts for Hospitals in Puerto Rico, Labor/Nonlabor (National: 62
      Percent Labor Share/38 Percent Nonlabor Share Because Wage Index Is Less Than or Equal to 1)--FY 2017
----------------------------------------------------------------------------------------------------------------
                                       Rates if wage index is greater than 1    Rates if wage index is less than
                                   --------------------------------------------           or equal to 1
        Standardized amount                                                    ---------------------------------
                                            Labor               Nonlabor             Labor           Nonlabor
----------------------------------------------------------------------------------------------------------------
National \1\......................  Not Applicable......  Not Applicable......       $3,420.01        $2,096.13
----------------------------------------------------------------------------------------------------------------
\1\ For FY 2017, there are no CBSAs in Puerto Rico with a national wage index greater than 1.

    (2) Table 1D titled ``CAPITAL STANDARD FEDERAL PAYMENT RATE--FY 
2017'' is corrected as follows:

        Table 1D--Capital Standard Federal Payment Rate--FY 2017
------------------------------------------------------------------------
                                                               Rate
------------------------------------------------------------------------
National...............................................         $446.79
------------------------------------------------------------------------

C. Corrections of Errors in the Appendices

    1. On page 57312, bottom of the page, third column, first partial 
paragraph,
    a. Line 8, the figure ``$987'' is corrected to read ``$990''.
    b. Line 10, the figure ``$66'' is corrected to read ``$72''.
    2. On page 57315, upper three-fourths of the page--
    a. Second column, third full paragraph,
    (1) Line 7, the figure ``1,380'' is corrected to read ``1,369''.
    (2) Line 9, the figure ``1,135'' is corrected to read ``1,146''.
    b. Third column, first full paragraph, line 13--
    (1) The figure ``1,372'' is corrected to read ``1,369''.
    (2) The figure ``1,150'' is corrected to read ``1,153''.
    3. On pages 57315 through 57317, the table titled ``TABLE I--IMPACT 
ANALYSIS OF CHANGES TO THE IPPS FOR OPERATING COSTS FOR FY 2017'' is 
corrected to read as follows:

[[Page 68956]]



                                                         Table I--Impact Analysis of Changes to the IPPS for Operating Costs for FY 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  FY 2017      FY 2017 Wage                         Rural and
                                                                                                weights and   data under new                      imputed floor
                                                                               Hospital rate    DRG changes        CBSA                               with       Application of the
                                                                  Number of     update and         with        designations     FY 2017 MGCRB    application of     frontier wage    All FY 2017
                                                                  hospitals    documentation  application of       with       reclassifications  national rural       index and        changes
                                                                     \1\        and coding     recalibration  application of                       and imputed   out[dash]migration
                                                                                adjustment        budget        wage budget                       floor budget       adjustment
                                                                                                neutrality      neutrality                         neutrality
                                                                 ...........         (1) \2\         (2) \3\         (3) \4\         (4) \5\            (5) \6\           (6) \7\        (7) \8\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
All Hospitals..................................................        3,330             1.0             0.0             0.0             0.0                0.0               0.1            0.9
By Geographic Location:
Urban hospitals................................................        2,515             0.9             0.0             0.0            -0.1                0.0               0.1            0.9
    Large urban areas..........................................        1,369             0.9             0.1             0.0            -0.3               -0.1               0.0            0.9
    Other urban areas..........................................        1,146             1.0             0.0             0.0             0.1                0.2               0.2            1.0
Rural hospitals................................................          815             1.6            -0.4             0.1             1.3               -0.2               0.1            1.2
Bed Size (Urban):
    0-99 beds..................................................          659             0.9            -0.2             0.2            -0.5                0.1               0.2            0.9
    100-199 beds...............................................          767             1.0            -0.1             0.0             0.0                0.3               0.2            0.7
    200-299 beds...............................................          446             1.0            -0.1            -0.1             0.1                0.0               0.1            0.8
    300-499 beds...............................................          431             1.0             0.1             0.0            -0.2                0.1               0.2            0.9
    500 or more beds...........................................          212             0.9             0.2             0.0            -0.2               -0.2               0.0            1.1
Bed Size (Rural):
    0-49 beds..................................................          317             1.5            -0.5             0.1             0.2               -0.2               0.3            1.0
    50-99 beds.................................................          292             1.8            -0.6             0.1             0.8               -0.2               0.1            1.2
    100-149 beds...............................................          120             1.6            -0.4             0.0             1.5               -0.2               0.2            1.0
    150-199 beds...............................................           46             1.7            -0.2             0.2             1.7               -0.3               0.0            1.3
    200 or more beds...........................................           40             1.6            -0.1             0.2             2.5               -0.3               0.0            1.5
Urban by Region:
    New England................................................          116             0.8             0.0            -0.5             1.1                0.9               0.1           -0.4
    Middle Atlantic............................................          315             0.9             0.1            -0.1             0.8               -0.2               0.1            0.9
    South Atlantic.............................................          407             1.0             0.0            -0.2            -0.5               -0.3               0.1            0.9
    East North Central.........................................          390             0.9             0.0            -0.1            -0.2               -0.4               0.0            1.0
    East South Central.........................................          147             1.0             0.0            -0.1            -0.4               -0.3               0.0            1.2
    West North Central.........................................          163             1.1             0.1            -0.1            -0.8               -0.4               0.7            1.0
    West South Central.........................................          385             0.9             0.0             0.2            -0.5               -0.4               0.0            1.2
    Mountain...................................................          163             1.1             0.0             0.1            -0.3                1.2               0.2            2.2
    Pacific....................................................          378             0.9             0.0             0.4            -0.4                1.0               0.1            0.5
    Puerto Rico................................................           51             0.9             0.1            -0.5            -1.0                0.1               0.1            0.3
Rural by Region:
    New England................................................           21             1.3            -0.2             0.3             1.4               -0.3               0.2            1.6
    Middle Atlantic............................................           54             1.7            -0.4             0.1             0.8               -0.2               0.1            1.6
    South Atlantic.............................................          128             1.7            -0.5            -0.1             2.3               -0.3               0.1            1.0
    East North Central.........................................          115             1.7            -0.4             0.0             1.0               -0.2               0.1            1.2
    East South Central.........................................          155             1.1            -0.3             0.4             2.2               -0.4               0.1            1.0
    West North Central.........................................           98             2.2            -0.4             0.0             0.2               -0.1               0.3            1.5
    West South Central.........................................          160             1.5            -0.4             0.4             1.3               -0.3               0.1            1.2
    Mountain...................................................           60             1.7            -0.4             0.1             0.2               -0.1               0.2            1.3
    Pacific....................................................           24             1.9            -0.4            -0.3             1.3               -0.1               0.0            1.3
By Payment Classification:                                                 0             0.0             0.0             0.0             0.0                0.0               0.0            0.0
    Urban hospitals............................................        2,522             0.9             0.0             0.0            -0.1                0.0               0.1            0.9
    Large urban areas..........................................        1,369             0.9             0.1             0.0            -0.3               -0.1               0.0            0.9
    Other urban areas..........................................        1,153             1.0             0.0             0.0             0.1                0.2               0.2            1.0
    Rural areas................................................          808             1.6            -0.4             0.1             1.4               -0.2               0.1            1.2
Teaching Status:
    Nonteaching................................................        2,266             1.1            -0.2             0.0             0.1                0.2               0.1            0.8
    Fewer than 100 residents...................................          815             1.0             0.0             0.0            -0.1                0.0               0.2            0.9
    100 or more residents......................................          249             0.9             0.2             0.0            -0.1               -0.2               0.0            1.1
Urban DSH:
    Non-DSH....................................................          589             0.9            -0.1            -0.2             0.2                0.0               0.2            0.8
    100 or more beds...........................................        1,642             0.9             0.1             0.0            -0.1                0.0               0.1            0.9
    Less than 100 beds.........................................          363             1.0            -0.3             0.0            -0.5                0.1               0.1            0.7
Rural DSH:
    SCH........................................................          240             2.0            -0.6             0.1             0.1               -0.1               0.0            1.4
    RRC........................................................          325             1.7            -0.3             0.1             1.8               -0.2               0.0            1.3
    100 or more beds...........................................           29             0.9            -0.4             0.1             2.9               -0.4               0.1            0.5
    Less than 100 beds.........................................          142             0.8            -0.4             0.2             1.3               -0.4               0.7            0.2
Urban teaching and DSH:
    Both teaching and DSH......................................          898             0.9             0.1             0.0            -0.2               -0.1               0.1            1.0
    Teaching and no DSH........................................          109             0.9             0.0            -0.1             1.1                0.0               0.0            0.7
    No teaching and DSH........................................        1,107             1.0            -0.1             0.1            -0.1                0.3               0.1            0.8
    No teaching and no DSH.....................................          408             0.9            -0.1            -0.2            -0.4                0.0               0.2            0.9
Special Hospital Types:
    RRC........................................................          189             0.8            -0.1             0.1             1.9                0.0               0.5            1.2
    SCH........................................................          324             2.1            -0.3            -0.1             0.0                0.0               0.0            1.7
    MDH........................................................          148             1.7            -0.6             0.0             0.6               -0.1               0.1            1.3
    SCH and RRC................................................          126             2.2            -0.3             0.1             0.4               -0.1               0.0            1.8
    MDH and RRC................................................           12             2.1            -0.6            -0.1             1.3               -0.2               0.0            2.2
Type of Ownership:
    Voluntary..................................................        1,927             1.0             0.0             0.0             0.0                0.0               0.1            0.9
    Proprietary................................................          881             1.0             0.0             0.1             0.0                0.0               0.1            0.9
    Government.................................................          522             1.0             0.0            -0.1            -0.2                0.0               0.1            0.9

[[Page 68957]]

 
Medicare Utilization as a Percent of Inpatient Days:
    0-25.......................................................          523             0.8             0.1             0.1            -0.3                0.2               0.0            1.1
    25-50......................................................        2,122             1.0             0.0             0.0             0.0               -0.1               0.1            0.9
    50-65......................................................          545             1.2            -0.2            -0.1             0.6                0.0               0.1            0.9
    Over 65....................................................           89             1.2            -0.3             0.3            -0.4                0.2               0.2            1.0
FY 2017 Reclassifications by the Medicare Geographic
 Classification Review Board:
    All Reclassified Hospitals.................................          791             1.1            -0.1             0.0             2.3               -0.2               0.0            0.9
    Non-Reclassified Hospitals.................................        2,539             1.0             0.0             0.0            -0.8                0.1               0.1            0.9
    Urban Hospitals Reclassified...............................          532             1.0             0.0            -0.1             2.3               -0.1               0.0            0.9
    Urban Nonreclassified Hospitals............................        1,936             0.9             0.1             0.0            -0.9                0.1               0.1            0.9
    Rural Hospitals Reclassified Full Year.....................          277             1.7            -0.3             0.1             2.2               -0.2               0.0            1.3
    Rural Nonreclassified Hospitals Full Year..................          489             1.6            -0.4             0.2            -0.2               -0.2               0.3            1.1
    All Section 401 Reclassified Hospitals:....................           72             1.7            -0.2             0.0             0.3               -0.1               0.9            1.5
    Other Reclassified Hospitals (Section 1886(d)(8)(B)).......           48             1.2            -0.4             0.1             3.1               -0.4               0.0            0.8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Because data necessary to classify some hospitals by category were missing, the total number of hospitals in each category may not equal the national total. Discharge data are from FY
  2015, and hospital cost report data are from reporting periods beginning in FY 2012 and FY 2013.
\2\ This column displays the payment impact of the hospital rate update and other adjustments including the 1.65 percent adjustment to the national standardized amount and hospital-specific
  rate (the estimated 2.7 percent market basket update reduced by 0.3 percentage points for the multifactor productivity adjustment and the 0.75 percentage point reduction under the Affordable
  Care Act), the -1.5 percent documentation and coding adjustment to the national standardized amount and the adjustment of (1/0.998) to permanently remove the -0.2 percent reduction, and the
  1.006 temporary adjustment to address the effects of the 0.2 percent reduction in effect for FYs 2014 through 2016 related to the 2-midnight policy.
\3\ This column displays the payment impact of the changes to the Version 34 GROUPER, the changes to the relative weights and the recalibration of the MS DRG weights based on FY 2015 MedPAR
  data in accordance with section 1886(d)(4)(C)(iii) of the Act. This column displays the application of the recalibration budget neutrality factor of 0.999078 in accordance with section
  1886(d)(4)(C)(iii) of the Act.
\4\ This column displays the payment impact of the update to wage index data using FY 2013 cost report data and the OMB labor market area delineations based on 2010 Decennial Census data. This
  column displays the payment impact of the application of the wage budget neutrality factor, which is calculated separately from the recalibration budget neutrality factor, and is calculated
  in accordance with section 1886(d)(3)(E)(i) of the Act. The wage budget neutrality factor is 1.000210.
\5\ Shown here are the effects of geographic reclassifications by the Medicare Geographic Classification Review Board (MGCRB) along with the effects of the continued implementation of the new
  OMB labor market area delineations on these reclassifications. The effects demonstrate the FY 2017 payment impact of going from no reclassifications to the reclassifications scheduled to be
  in effect for FY 2017. Reclassification for prior years has no bearing on the payment impacts shown here. This column reflects the geographic budget neutrality factor of 0.988136.
\6\ This column displays the effects of the rural and imputed floor based on the continued implementation of the new OMB labor market area delineations. The Affordable Care Act requires the
  rural floor budget neutrality adjustment to be 100 percent national level adjustment. The rural floor budget neutrality factor (which includes the imputed floor) applied to the wage index is
  0.991987. This column also shows the effect of the 3-year transition for hospitals that were located in urban counties that became rural under the new OMB delineations or hospitals deemed
  urban where the urban area became rural under the new OMB delineations, with a budget neutrality factor of 0.999997.
\7\ This column shows the combined impact of the policy required under section 10324 of the Affordable Care Act that hospitals located in frontier States have a wage index no less than 1.0 and
  of section 1886(d)(13) of the Act, as added by section 505 of Public Law 108-173, which provides for an increase in a hospital's wage index if a threshold percentage of residents of the
  county where the hospital is located commute to work at hospitals in counties with higher wage indexes. These are not budget neutral policies.
\8\ This column shows the estimated change in payments from FY 2016 to FY 2017.

    4. On page 57319,
    a. First column, second full paragraph,
    (1) Line 6, the figure ``0.988224'' is corrected to read 
``0.988136''.
    (2) Line 13, the figure ``1.4'' is corrected to read ``1.3''.
    b. Second column--
    (1) First full paragraph--
    (a) Line 8, the figure ``0.9930'' is corrected to read 
``0.991987''.
    (b) Line 9, the figure ``0.7'' is corrected to read ``0.8''.
    (2) Third full paragraph--
    (a) Line 1, the figure ``397'' is corrected to read ``436''.
    (b) Line 5--
    (1) The figure ``0.9930'' is corrected to read ``0.991987''.
    (2) The figure ``0.7'' is corrected to read ``0.8''.
    (c) Line 23, the figure ``1.0'' is corrected to read ``0.9''.
    (d) Line 31, the figure ``$24'' is corrected to read ``$22''.
    (e) Line 33, the figure ``0.7'' is corrected to read ``0.6''.
    c. Third column--
    (1) First full paragraph,
    (a) Line 7, the figure ``$10'' is corrected to read ``$6.4''.
    (b) Line 18, the figure ``$17'' is corrected to read ``$18''.
    (2) Second full paragraph, line 28, the figure ``0.999994'' is 
corrected to read ``0.999997''.
    5. On page 57320, the table titled ``FY 2017 IPPS Estimated 
Payments Due to Rural Floor and Imputed Floor with National Budget 
Neutrality'' is corrected to read as follows:

[[Page 68958]]



         FY 2017 IPPS Estimated Payments Due to Rural and Imputed Floor With National Budget Neutrality
----------------------------------------------------------------------------------------------------------------
                                                                            Percent change in
                                                             Number of       payments due to
                                                           hospitals that     application of
                State                     Number of       will receive the   rural floor and    Difference (in $
                                          hospitals        rural floor or     imputed floor        millions)
                                                           imputed floor       with budget
                                                                                neutrality
                                                    (1)                (2)                (3)                (4)
----------------------------------------------------------------------------------------------------------------
Alabama.............................                 83                  6               -0.3                 -6
Alaska..............................                  6                  4                2.1                  4
Arizona.............................                 57                 46                3.5                 63
Arkansas............................                 44                  0               -0.4                 -4
California..........................                301                186                1.3                131
Colorado............................                 48                  3                0.2                  3
Connecticut.........................                 31                  8                0.2                  4
Delaware............................                  6                  2                  0                  0
Washington, DC......................                  7                  0               -0.4                 -1
Florida.............................                171                 16               -0.3                 -2
Georgia.............................                105                  0               -0.4                -18
Hawaii..............................                 12                  0               -0.3                -10
Idaho...............................                 14                  0               -0.3                 -1
Illinois............................                126                  3               -0.4                 -1
Indiana.............................                 89                  0               -0.4                -19
Iowa................................                 35                  0               -0.4                -11
Kansas..............................                 53                  0               -0.3                 -4
Kentucky............................                 65                  0               -0.4                 -3
Louisiana...........................                 95                  2               -0.4                 -6
Maine...............................                 18                  0               -0.4                 -5
Massachusetts.......................                 58                 15                0.6                 -2
Michigan............................                 95                  0               -0.4                 22
Minnesota...........................                 49                  0               -0.3                -18
Mississippi.........................                 62                  0               -0.4                 -6
Missouri............................                 74                  2               -0.3                 -4
Montana.............................                 12                  4                0.3                 -8
Nebraska............................                 26                  0               -0.3                  1
Nevada..............................                 24                  3               -0.2                 -2
New Hampshire.......................                 13                  9                2.2                 -2
New Jersey..........................                 64                 18                0.2                 11
New Mexico..........................                 25                  0               -0.3                  6
New York............................                154                 21               -0.3                 -1
North Carolina......................                 84                  1               -0.4                -20
North Dakota........................                  6                  1               -0.3                -12
Ohio................................                130                 10               -0.4                 -1
Oklahoma............................                 86                  2               -0.3                -13
Oregon..............................                 34                  2               -0.4                 -4
Pennsylvania........................                151                  5               -0.4                 -4
Puerto Rico.........................                 51                 12                0.1                -20
Rhode Island........................                 11                 10                4.7                  0
South Carolina......................                 57                  5               -0.1                 18
South Dakota........................                 18                  0               -0.2                 -2
Tennessee...........................                 92                 20               -0.3                 -1
Texas...............................                320                  3               -0.4                 -7
Utah................................                 33                  1               -0.3                -26
Vermont.............................                  6                  0               -0.2                 -2
Virginia............................                 76                  1               -0.3                 -1
Washington..........................                 49                  6               -0.1                 -8
West Virginia.......................                 29                  3               -0.2                 -1
Wisconsin...........................                 65                  6               -0.3                 -5
Wyoming.............................                 10                  0               -0.1                  0
----------------------------------------------------------------------------------------------------------------

    6. On page 57321, second column, first partial paragraph --
    a Line 1, the figure ``277'' is corrected to read ``278''.
    b Line 7, the figure ``1.0'' is corrected to read ``0.9''.
    7. On pages 57321 through 57323, the table titled ``TABLE II--
IMPACT ANALYSIS OF CHANGES FOR FY 2017 ACUTE CARE HOSPITAL OPERATING 
PROSPECTIVE PAYMENT SYSTEM [PAYMENTS PER DISCHARGE]'' is corrected to 
read as follows:

[[Page 68959]]



    Table II--Impact Analysis of Changes for FY 2017 Acute Care Hospital Operating Prospective Payment System
                                            [Payments per discharge]
----------------------------------------------------------------------------------------------------------------
                                                                     Estimated       Estimated
                                                     Number of      average FY      average FY        FY 2017
                                                     hospitals     2016 payment    2017 payment       changes
                                                                   per discharge   per discharge
                                                             (1)             (2)             (3)             (4)
----------------------------------------------------------------------------------------------------------------
All Hospitals...................................           3,330         $11,542         $11,649             0.9
By Geographic Location:
    Urban hospitals.............................           2,515          11,890          11,997             0.9
    Large urban areas...........................           1,369          12,690          12,799             0.9
    Other urban areas...........................           1,146          10,946          11,051             1.0
    Rural hospitals.............................             815           8,602           8,707             1.2
Bed Size (Urban):
    0-99 beds...................................             659           9,392           9,478             0.9
    100-199 beds................................             767          10,050          10,117             0.7
    200-299 beds................................             446          10,757          10,840             0.8
    300-499 beds................................             431          12,092          12,202             0.9
    500 or more beds............................             212          14,613          14,772             1.1
Bed Size (Rural):
    0-49 beds...................................             317           7,208           7,279             1.0
    50-99 beds..................................             292           8,192           8,292             1.2
    100-149 beds................................             120           8,434           8,519             1.0
    150-199 beds................................              46           9,243           9,367             1.3
    200 or more beds............................              40          10,171          10,320             1.5
Urban by Region:
    New England.................................             116          12,957          12,901            -0.4
    Middle Atlantic.............................             315          13,471          13,593             0.9
    South Atlantic..............................             407          10,498          10,595             0.9
    East North Central..........................             390          11,190          11,303             1.0
    East South Central..........................             147          10,042          10,160             1.2
    West North Central..........................             163          11,578          11,692             1.0
    West South Central..........................             385          10,693          10,820             1.2
    Mountain....................................             163          12,279          12,549             2.2
    Pacific.....................................             378          15,372          15,452             0.5
    Puerto Rico.................................              51           8,491           8,513             0.3
Rural by Region:
    New England.................................              21          11,818          12,009             1.6
    Middle Atlantic.............................              54           8,655           8,791             1.6
    South Atlantic..............................             128           8,043           8,122             1.0
    East North Central..........................             115           8,918           9,023             1.2
    East South Central..........................             155           7,639           7,716             1.0
    West North Central..........................              98           9,420           9,560             1.5
    West South Central..........................             160           7,243           7,328             1.2
    Mountain....................................              60          10,100          10,228             1.3
    Pacific.....................................              24          12,045          12,197             1.3
By Payment Classification:
    Urban hospitals.............................           2,522          11,886          11,993             0.9
    Large urban areas...........................           1,369          12,690          12,799             0.9
    Other urban areas...........................           1,153          10,940          11,046             1.0
    Rural areas.................................             808           8,602           8,706             1.2
Teaching Status:
    Nonteaching.................................           2,266           9,600           9,680             0.8
    Fewer than 100 residents....................             815          11,133          11,231             0.9
    100 or more residents.......................             249          16,764          16,949             1.1
Urban DSH:
    Non-DSH.....................................             589          10,055          10,140             0.8
    100 or more beds............................           1,642          12,247          12,359             0.9
    Less than 100 beds..........................             363           8,853           8,914             0.7
Rural DSH:
    SCH.........................................             240           8,584           8,702             1.4
    RRC.........................................             325           9,006           9,123             1.3
    100 or more beds............................              29           7,018           7,054             0.5
    Less than 100 beds..........................             142           6,823           6,838             0.2
Urban teaching and DSH:
    Both teaching and DSH.......................             898          13,344          13,474             1.0
    Teaching and no DSH.........................             109          11,361          11,442             0.7
    No teaching and DSH.........................           1,107          10,047          10,124             0.8
    No teaching and no DSH......................             408           9,455           9,539             0.9
Special Hospital Types:
    RRC.........................................             189           9,709           9,824             1.2

[[Page 68960]]

 
    SCH.........................................             324          10,344          10,516             1.7
    MDH.........................................             148           7,321           7,415             1.3
    SCH and RRC.................................             126          10,767          10,957             1.8
    MDH and RRC.................................              12           8,822           9,019             2.2
Type of Ownership:
    Voluntary...................................           1,927          11,719          11,830             0.9
    Proprietary.................................             881          10,130          10,218             0.9
    Government..................................             522          12,485          12,596             0.9
Medicare Utilization as a Percent of Inpatient
 Days:
    0-25........................................             523          14,996          15,160             1.1
    25-50.......................................           2,122          11,460          11,562             0.9
    50-65.......................................             545           9,343           9,431             0.9
    Over 65.....................................              89           6,948           7,019             1.0
FY 2017 Reclassifications by the Medicare
 Geographic Classification Review Board:
    All Reclassified Hospitals..................             791          11,399          11,507             0.9
    Non-Reclassified Hospitals..................           2,539          11,595          11,701             0.9
    Urban Hospitals Reclassified................             532          12,008          12,115             0.9
    Urban Nonreclassified Hospitals.............           1,936          11,849          11,955             0.9
    Rural Hospitals Reclassified Full Year......             277           8,984           9,101             1.3
    Rural Nonreclassified Hospitals Full Year...             489           8,173           8,266             1.1
    All Section 401 Reclassified Hospitals......              72          11,307          11,474             1.5
    Other Reclassified Hospitals (Section                     48           7,889           7,954             0.8
     1886(d)(8)(B)).............................
----------------------------------------------------------------------------------------------------------------

    7. On page 57324, top of the page, third column, last paragraph, 
line 1, the figure ``2,426'' is corrected to read ``2,419''.
    8. On pages 57324 and 57325, the table titled ``Modeled 
Disproportionate Share Hospital Payments for Estimated FY 2017 DSHs by 
Hospital Type: Model DSH $ (In Millions) From FY 2016 to FY 2017'' is 
corrected to read as follows:

  Modeled Disproportionate Share Hospital Payments for Estimated FY 2017 DSHS by Hospital Type: Model DSH $ (in
                                        Millions) From FY 2016 to FY 2017
----------------------------------------------------------------------------------------------------------------
                                                   FY 2016 final   FY 2017 final      Dollar
                                     Number of    rule estimated  rule estimated  difference: FY  Percent change
                                  DSHs (FY 2017)    DSH $ * (in     DSH $ * (in    2017- FY 2016        **
                                                     millions)       millions)     (in millions)
                                             (1)             (2)             (3)             (4)             (5)
----------------------------------------------------------------------------------------------------------------
Total...........................           2,419          $9,767          $9,551           -$216            -2.2
By Geographic Location:
    Urban Hospitals.............           1,921           9,294           9,106            -188            -2.0
        Large Urban Areas.......           1,045           5,885           5,765            -120            -2.0
        Other Urban Areas.......             876           3,408           3,341             -68            -2.0
    Rural Hospitals.............             498             473             445             -28            -5.9
Bed Size (Urban):
    0 to 99 Beds................             336             189             185              -4            -2.2
    100 to 249 Beds.............             837           2,211           2,154             -57            -2.6
    250+ Beds...................             748           6,894           6,767            -127            -1.8
Bed Size (Rural):
    0 to 99 Beds................             368             206             190             -16            -7.8
    100 to 249 Beds.............             116             211             199             -12            -5.5
    250+ Beds...................              14              56              56               0            -0.2
Urban by Region:
    East North Central..........             322           1,273           1,252             -22            -1.7
    East South Central..........             129             574             566              -8            -1.4
    Middle Atlantic.............             232           1,614           1,570             -44            -2.7
    Mountain....................             125             448             448               0            -0.1
    New England.................              90             394             385              -9            -2.4
    Pacific.....................             312           1,459           1,448             -10            -0.7
    Puerto Rico.................              41             104             116              12            11.3

[[Page 68961]]

 
    South Atlantic..............             314           1,777           1,721             -56            -3.2
    West North Central..........             104             451             439             -11            -2.5
    West South Central..........             252           1,200           1,161             -39            -3.2
Rural by Region:
    East North Central..........              64              49              44              -4            -8.3
    East South Central..........             141             149             141              -8            -5.3
    Middle Atlantic.............              28              34              33              -1            -2.4
    Mountain....................              21              16              15               0            -0.2
    New England.................              11              15              16               1             7.2
    Pacific.....................               7               9               7              -3           -27.4
    South Atlantic..............              86              98              92              -6            -6.4
    West North Central..........              31              20              19              -1            -6.3
    West South Central..........             109              83              78              -6            -7.0
By Payment Classification:
    Urban Hospitals.............           1,886           9,243           9,055            -188            -2.0
        Large Urban Areas.......           1,043           5,884           5,764            -120            -2.0
        Other Urban Areas.......             843           3,359           3,292             -68            -2.0
    Rural Hospitals.............             533             523             496             -28            -5.3
Teaching Status:
    Nonteaching.................           1,544           3,117           3,053             -64            -2.1
    Fewer than 100 residents....             637           3,213           3,132             -81            -2.5
    100 or more residents.......             238           3,437           3,366             -71            -2.1
Type of Ownership:
    Voluntary...................           1,405           6,044           5,913            -131            -2.2
    Proprietary.................             541           1,672           1,629             -43            -2.6
    Government..................             471           2,023           1,983             -40            -2.0
    Unknown.....................               2              27              25              -2            -6.1
Medicare Utilization Percent:
    Missing or Unknown..........               4               1               1               0             0.9
    0 to 25.....................             428           3,013           2,974             -39            -1.3
    25 to 50....................           1,617           6,356           6,189            -166            -2.6
    50 to 65....................             319             385             375             -10            -2.5
    Greater than 65.............              51              12              11              -1            -8.2
----------------------------------------------------------------------------------------------------------------
Source: Dobson [bond] DaVanzo analysis of 2011-2013 Hospital Cost Reports.
* Dollar DSH calculated by [0.25 * estimated section 1886(d)(5)(F) payments] + [0.75 * estimated section
  1886(d)(5)(F) payments * Factor 2 * Factor 3]. When summed across all hospitals projected to receive DSH
  payments, DSH payments are estimated to be $9,767 million in FY 2016 and $9,551 million in FY 2017.
** Percentage change is determined as the difference between Medicare DSH payments modeled for the FY 2017 IPPS/
  LTCH PPS final rule (column 3) and Medicare DSH payments modeled for the FY 2016 IPPS/LTCH PPS final rule
  (column 2) divided by Medicare DSH payments modeled for the FY 2016 final rule (column 2) times 100 percent.

    9. On page 57325, bottom of the page, third column, last paragraph, 
line 8, the figure ``6.4'' is corrected to read ``5.9''.
    10. On page 57326, first column--
    a. First partial paragraph--
    (1) Line 7 the figure ``5.2'' is corrected to read ``5.5''.
    (2) Line 8, the figure ``5.9'' is corrected to read ``0.2''.
    b. First full paragraph, line 12, the figure ``11.4'' is corrected 
to read ``11.3''.
    c. Third full paragraph (last paragraph)--
    (1) Line 12, the figure ``11.4'' is corrected to read ``11.3''.
    (2) Line 18, the figure ``$9.5 million'' is corrected to read 
``$9.4 million''.
    11. On page 57330, third column--
    a. Fourth bulleted paragraph, line 4, the figure ``0.9991'' is 
corrected to read ``0.9990''.
    b. Last paragraph, line 6, the figure ``1.84'' is corrected to read 
``1.83''.
    12. On page 57331, top half of the page--
    a. First column--
    (1) First partial paragraph--
    (a) Line 1, the phrase ``Less than half of the hospitals'' is 
corrected to read ``Most of the hospitals''.
    (b) Lines 4 through 6, the phrase ``the effects of changes to the 
GAFs, while the remainder of these urban area hospitals would 
experience no change or a decrease in'' is corrected to read ``the 
effects of changes to the GAFs, while hospitals in one urban area are 
expected to experience a decrease in''.
    (c) Line 11, the phrase ``except for two rural areas where changes 
in'' is corrected to read, ``except for one rural area where changes 
in''.
    (2) Third paragraph, lines 8 and line 9, the phrase ``0.7 percent, 
while hospitals in rural areas, on average, are expected to experience 
a 0.8'' is corrected to read ``0.7 percent, and hospitals in rural 
areas, on average, are also expected to experience a 0.7''.
    b. Second column--
    (1) First partial paragraph, lines 2 through 6, the sentence ``The 
primary factor contributing to the small difference in the projected 
increase in capital IPPS payments per case for urban hospitals as 
compared to rural hospitals is the changes to the GAFs.'' is corrected 
by deleting the sentence.
    (2) First full paragraph--
    (a) Lines 4 through 8, ``range from a 4.2 percent increase for the 
Puerto Rico urban hospitals, and a 1.4 percent

[[Page 68962]]

increase for the West South Central urban region to a 0.7 percent 
increase for the Mountain urban region.'' is corrected to read ``range 
from a 4.1 percent increase for the Puerto Rico urban hospitals, and a 
2.1 percent increase for the Mountain urban region to a 0.7 percent 
increase for several other urban regions.''.
    (b) Line 13, the figure ``4.2'' is corrected to read ``4.1''.
    (c) Line 23, the figure ``1.6'' is corrected to read ``2.1''.
    (d) Line 26, the figure ``0.4'' should read ``0.1''.
    c. Third column--
    (1) First full paragraph, line 9, the figure ``0.7'' is corrected 
to read ``0.6''.
    (2) Second full paragraph--
    (a) Line 13, the figure ``1.0'' is corrected to read ``0.9''.
    (b) Line 17, the figure ``1.0'' is corrected to read ``0.9''.
    (c) Line 20, the figure ``0.2'' is corrected to read ``0.3''.
    13. On pages 57331 and 57332, the table titled ``Table III.--
Comparison of Total Payments Per Case [FY 2016 Payments Compared To FY 
2017 Payments]'' is corrected to read as follows:

                                Table III--Comparison of Total Payments per Case
                                 [FY 2016 payments compared to FY 2017 payments]
----------------------------------------------------------------------------------------------------------------
                                                                    Average FY      Average FY
                                                     Number of    2016 payments/  2017 payments/      Change
                                                     hospitals         case            case
----------------------------------------------------------------------------------------------------------------
By Geographic Location:
    All hospitals...............................           3,330             912             920             0.8
        Large urban areas (populations over 1              1,369           1,011           1,019             0.7
         million)...............................
        Other urban areas (populations of 1                1,146             871             879             0.9
         million of fewer)......................
        Rural areas.............................             815             618             623             0.7
    Urban hospitals.............................           2,515             947             955             0.8
        0-99 beds...............................             659             768             774             0.8
        100-199 beds............................             767             824             829             0.6
        200-299 beds............................             446             865             871             0.7
        300-499 beds............................             431             958             967             0.9
        500 or more beds........................             212           1,139           1,149             0.9
    Rural hospitals.............................             815             618             623             0.7
        0-49 beds...............................             317             520             524             0.7
        50-99 beds..............................             292             577             582             0.8
        100-149 beds............................             120             610             614             0.6
        150-199 beds............................              46             669             673             0.6
        200 or more beds........................              40             738             745             0.9
By Region:
    Urban by Region.............................           2,515             947             955             0.8
        New England.............................             116           1,031           1,024            -0.6
        Middle Atlantic.........................             315           1,056           1,064             0.7
        South Atlantic..........................             407             840             847             0.8
        East North Central......................             390             908             915             0.8
        East South Central......................             147             793             804             1.3
        West North Central......................             163             923             930             0.7
        West South Central......................             385             858             868             1.1
        Mountain................................             163             977             998             2.1
        Pacific.................................             378           1,219           1,227             0.7
        Puerto Rico.............................              51             435             453             4.1
    Rural by Region.............................             815             618             623             0.7
        New England.............................              21             868             878             1.1
        Middle Atlantic.........................              54             591             603             2.1
        South Atlantic..........................             128             584             584             0.0
        East North Central......................             115             638             643             0.9
        East South Central......................             155             562             566             0.9
        West North Central......................              98             666             668             0.4
        West South Central......................             160             536             542             1.2
        Mountain................................              60             718             717            -0.1
        Pacific.................................              24             804             812             1.0
By Payment Classification:
    All hospitals...............................           3,330             912             920             0.8
        Large urban areas (populations over 1              1,369           1,011           1,019             0.7
         million)...............................
        Other urban areas (populations of 1                1,153             870             878             0.9
         million of fewer)......................
    Rural areas.................................             808             619             623             0.7
    Teaching Status:
        Non-teaching............................           2,266             771             776             0.7
        Fewer than 100 Residents................             815             885             892             0.8
        100 or more Residents...................             249           1,287           1,298             0.9
        Urban DSH:
            100 or more beds....................           1,642             968             976             0.8
            Less than 100 beds..................             363             696             702             0.8
        Rural DSH:
            Sole Community (SCH/EACH)...........             240             575             581             1.0
            Referral Center (RRC/EACH)..........             325             649             654             0.7
            Other Rural:
                100 or more beds................              29             538             540             0.4

[[Page 68963]]

 
                Less than 100 beds..............             142             526             528             0.3
    Urban teaching and DSH:
        Both teaching and DSH...................             898           1,043           1,052             0.9
        Teaching and no DSH.....................             109             942             948             0.6
        No teaching and DSH.....................           1,107             813             820             0.8
        No teaching and no DSH..................             408             815             820             0.6
    Rural Hospital Types:
        Non special status hospitals............           2,529             948             955             0.7
        RRC/EACH................................             189             772             782             1.4
        SCH/EACH................................             324             706             716             1.4
        SCH, RRC and EACH.......................             126             748             756             1.1
Hospitals Reclassified by the Medicare
 Geographic Classification Review Board:
    FY2017 Reclassifications:
        All Urban Reclassified..................             532             953             962             0.9
        All Urban Non-Reclassified..............           1,936             948             955             0.7
        All Rural Reclassified..................             277             650             655             0.9
        All Rural Non-Reclassified..............             489             578             580             0.3
        Other Reclassified Hospitals (Section                 42             599             602             0.5
         1886(d)(8)(B)).........................
    Type of Ownership:
        Voluntary...............................           1,927             926             934             0.8
        Proprietary.............................             881             820             827             0.8
        Government..............................             522             963             969             0.6
    Medicare Utilization as a Percent of
     Inpatient Days:
        0-25....................................             523           1,103           1,114             1.0
        25-50...................................           2,122             916             923             0.8
        50-65...................................             545             745             750             0.7
        Over 65.................................              89             529             531             0.4
----------------------------------------------------------------------------------------------------------------

    14. On page 57342--
    a. Top of the page--
    (1) First column, first full paragraph--
    (a) Line 11, the figure ``987'' is corrected to read ``990''.
    (b) Line 23, the figure ``809'' is corrected to read ``811''.
    (2) Second column, first partial paragraph--
    (a) Line 12, the figure ``809'' is corrected to read ``811''.
    (b) Line 14, the figure''680'' is corrected to read ``683''.
    (c) Line 19, the figure ``66'' is corrected to read ``72''.
    (d) Line 23, the figure ``746'' is corrected to read ``755''.
    b. Middle of the page, the table titled ``TABLE V--ACCOUNTING 
STATEMENT: CLASSIFICATION OF ESTIMATED EXPENDITURES UNDER THE IPPS FROM 
FY 2016 TO FY 2017'' is corrected to read as follows:

 Table V--Accounting Statement: Classification of Estimated Expenditures
                 Under the IPPS From FY 2016 to FY 2017
------------------------------------------------------------------------
                Category                            Transfers
------------------------------------------------------------------------
Annualized Monetized Transfers.........  $755 million.
From Whom to Whom......................  Federal Government to IPPS
                                          Medicare Providers.
------------------------------------------------------------------------


    Dated: September 29, 2016.
Madhura Valverde,
Executive Secretary to the Department, Department of Health and Human 
Services.
[FR Doc. 2016-24042 Filed 9-30-16; 11:15 am]
BILLING CODE 4120-01-P



                                                            Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                      68947

                                           DEPARTMENT OF HEALTH AND                                I. Background                                           On page 56804, as a result of our
                                           HUMAN SERVICES                                                                                                correction of the MS–DRG assignment
                                                                                                      In FR Doc. 2016–18476 of August 22,
                                                                                                                                                         in Table 6B—New Procedure Codes for
                                           Centers for Medicare & Medicaid                         2016 (81 FR 56761) there were a number
                                                                                                                                                         13 ICD–10–PCS procedure codes that
                                           Services                                                of technical and typographical errors
                                                                                                                                                         describe endovascular thrombectomy
                                                                                                   identified and corrected in the
                                                                                                                                                         procedures of the lower limb, as
                                           42 CFR Parts 405, 412, 413, and 489                     Correction of Errors section of this
                                                                                                                                                         described in section II.D. of this
                                                                                                   correcting document. The provisions in
                                                                                                                                                         correction document, we are making
                                                                                                   this correcting document are effective as
                                           [CMS–1655–F; CMS–1664–F; CMS–1632–F2]                                                                         additional conforming corrections to the
                                                                                                   if they had been included in the
                                                                                                                                                         table describing ICD–10–PCS
                                                                                                   document that appeared in the August
                                           RIN 0938–AS77; 0938–AS88; 0938–AS41                                                                           Endovascular Thrombectomy Procedure
                                                                                                   22, 2016 Federal Register. Accordingly,
                                                                                                                                                         Codes Reassigned to MS–DRGs 270,
                                                                                                   the corrections are effective October 1,
                                           Medicare Program; Hospital Inpatient                                                                          271, and 272 for FY 2017.
                                                                                                   2016.
                                           Prospective Payment Systems for                                                                                 On pages 56821 and 56823, we
                                           Acute Care Hospitals and the Long-                      II. Summary of Errors                                 erroneously stated there were 58
                                           Term Care Hospital Prospective                          A. Summary of Errors in the Preamble                  additional combination codes for
                                           Payment System and Policy Changes                                                                             removal and replacement of knee joints.
                                           and Fiscal Year 2017 Rates; Quality                        On page 56775, we made a                           There were 57 additional combination
                                           Reporting Requirements for Specific                     typographical error in stating the cost               codes.
                                           Providers; Graduate Medical                             reduction.                                              On pages 56822 and 56823, we
                                           Education; Hospital Notification                           On page 56796, we are correcting                   erroneously listed the code number for
                                           Procedures Applicable to Beneficiaries                  errors and inadvertent omissions in the               (Replacement of Left Knee Joint,
                                           Receiving Observation Services;                         summary and response to a comment on                  Femoral Surface with Synthetic
                                           Technical Changes Relating to Costs                     the assignment of 18 additional                       Substitute, Cemented, Open Approach)
                                           to Organizations and Medicare Cost                      diagnosis codes.                                      as code 0SRU0JA three times within the
                                           Reports; Finalization of Interim Final                     On page 56797, we erroneously                      table. The correct code number should
                                           Rules With Comment Period on LTCH                       referred to the wrong table.                          be 0SRU0J9 (Replacement of Left Knee
                                           PPS Payments for Severe Wounds,                            On page 56801, we are correcting                   Joint, Femoral Surface with Synthetic
                                           Modifications of Limitations on                         errors and inadvertent omissions in our               Substitute, Cemented, Open Approach).
                                           Redesignation by the Medicare                           response to comments on our proposal                    As a result of the corrections to pages
                                           Geographic Classification Review                        to redesignate four ICD–10–PCS                        56803, 56804, 56821, 56822, and 56823,
                                           Board, and Extensions of Payments to                    procedure codes.                                      we have made conforming changes to
                                           MDHs and Low-Volume Hospitals;                             On page 56803 and in the table on                  the ICD–10 MS–DRG Definitions
                                           Correction                                              page 56804 describing ICD–10–PCS                      Manual Version 34 and ICD–10 MS–
                                                                                                   Endovascular Thrombectomy Procedure                   DRG Grouper Software Version 34 for
                                           AGENCY:  Centers for Medicare &                                                                               FY 2017.
                                                                                                   Codes Reassigned to MS–DRGs 270,
                                           Medicaid Services (CMS), HHS.
                                                                                                   271, and 272 for FY 2017, we are                        On page 56858, we erroneously
                                           ACTION: Final rule; correction.                         correcting technical errors in our                    omitted MS–DRG 265 from the table of
                                                                                                   discussion in response to comments to                 MS–DRGs subject to the policy for
                                           SUMMARY:   This document corrects
                                                                                                   remove 34 ICD–10–PCS procedure                        replaced devices offered without cost or
                                           technical and typographical errors in
                                                                                                   codes describing endovascular                         with a credit.
                                           the final rule that appeared in the
                                           August 22, 2016 Federal Register titled                 thrombectomy of non-lower limbs from                    On pages 56895 and 56897, we
                                           ‘‘Medicare Program; Hospital Inpatient                  the proposed list of codes to be                      inadvertently made an error to the title
                                           Prospective Payment Systems for Acute                   reassigned to MS–DRGs 270, 271 and                    of ICD–10–PCS procedure code
                                           Care Hospitals and the Long-Term Care                   272. In this response, we erroneously                 XW03331 and omitted an additional
                                           Hospital Prospective Payment System                     referred to 34 procedure codes                        procedure code that describes
                                           and Policy Changes and Fiscal Year                      describing non-lower limb procedures                  Idarucizumab. Cases involving
                                           2017 Rates; Quality Reporting                           (as included in the list submitted by the             Idarucizumab that are eligible for new
                                           Requirements for Specific Providers;                    commenter) rather than 32 non-lower                   technology add-on payments will be
                                           Graduate Medical Education; Hospital                    limb procedure codes. Two of the 34                   identified by ICD–10–PCS procedure
                                           Notification Procedures Applicable to                   procedure codes identified by the                     codes XW03331 (Introduction of
                                           Beneficiaries Receiving Observation                     commenter, ICD–10–PCS procedure                       Idarucizumab, Dabigatran reversal agent
                                           Services; Technical Changes Relating to                 codes 04CT3ZZ (Extirpation of matter                  into peripheral vein, percutaneous
                                           Costs to Organizations and Medicare                     from right peroneal artery, percutaneous              approach, New Technology Group 1)
                                           Cost Reports; Finalization of Interim                   approach) and 04CU3ZZ (Extirpation of                 and XW04331 (Introduction of
                                           Final Rules With Comment Period on                      matter from left peroneal artery,                     Idarucizumab, Dabigatran reversal agent
                                           LTCH PPS Payments for Severe                            percutaneous approach), describe                      into central vein, percutaneous
                                           Wounds, Modifications of Limitations                    endovascular thrombectomy of lower                    approach, New Technology Group 1).
                                           on Redesignation by the Medicare                        limbs. These codes are assigned to MS–                  On page 56927, as a result of the
                                           Geographic Classification Review Board,                 DRGs 270, 271 and 272, accurately                     correction of the technical errors
                                           and Extensions of Payments to MDHs                      replicating the logic of ICD–9–CM MS–                 described in section II.B of this
                                           and Low-Volume Hospitals.’’                             DRGs Version 32 and supporting                        correction document, we have made
ehiers on DSK5VPTVN1PROD with RULES




                                                                                                   clinical and resource use homogeneity                 conforming changes to the following:
                                           DATES: This correction is effective
                                                                                                   as originally proposed and in                         The number of hospitals approved for
                                           October 1, 2016.                                        accordance with the finalized policy to               wage index reclassifications by the
                                           FOR FURTHER INFORMATION CONTACT:                        add procedures describing endovascular                Medicare Geographic Classification
                                           Donald Thompson, (410) 786–4487.                        thrombectomy of lower limbs to ICD–10                 Review Board (MGCRB) starting in FY
                                           SUPPLEMENTARY INFORMATION:                              Version 34 MS–DRGS 270, 271 and 272.                  2017 and the number of hospitals in a


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                                           68948            Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                           MGCRB reclassification status for FY                    rule did not properly reflect the                     budget neutrality factors and the outlier
                                           2017.                                                   following:                                            threshold (as described previously).
                                              On page 57002 in the table titled,                      • Withdrawal of a MGCRB
                                                                                                                                                         C. Summary of Errors in the Appendices
                                           ‘‘Previously Adopted and Newly                          reclassification for FY 2017 for one
                                           Finalized Baseline and Performance                      provider.                                                On pages 57312, 57315 through
                                           Periods for the FY 2021 Program Year’’                     • Application of urban to rural                    57317, 57319 through 57323, 57330
                                           we erroneously repeated the same                        reclassification under § 412.103 for                  through 57332 in our regulatory impact
                                           information three times, and in the first               three providers.                                      analyses, we made conforming
                                           instance provided incorrect                                Therefore, on page 57279, we                       corrections to the factors, values, and
                                           performance period years for the                        recalculated the reclassification hospital            tables and accompanying discussion of
                                           Mortality (MORT–30–AMI, MORT–30–                        budget neutrality adjustment.                         the changes in operating and capital
                                           HF, MORT–30–COPD) and THA/TKA                              The reclassification errors also                   IPPS payments for FY 2017 and the
                                           measures.                                               required the recalculation of additional              effects of certain budget neutrality
                                              On page 57033, we made a                             budget neutrality adjustment factors, the             factors as a result of the technical errors
                                           typographical error and omitted a dash                  fixed-loss cost threshold, the final wage             that lead to conforming changes in our
                                           within the web link address creating a                  indexes, and the national operating                   calculation of the operating and capital
                                           non-functional link.                                    standardized amounts. Therefore, we                   IPPS budget neutrality factors, outlier
                                                                                                   made conforming changes to the                        threshold, final wage indexes, operating
                                              On pages 57195, 57196, 57199, 57211,
                                                                                                   following:                                            standardized amounts, and capital
                                           57213, 57218, and 57220 through 57223
                                                                                                      • On page 57280, the rural floor                   Federal rate (as described in section II.B.
                                           we inadvertently made technical and
                                                                                                   budget neutrality adjustment and the                  of this correction document).
                                           typographical errors to the Long-Term
                                                                                                   wage index transition budget neutrality                  On pages 57324 through 57326, in the
                                           Care Hospital Quality Reporting
                                                                                                   adjustment.                                           table titled ‘‘Modeled Disproportionate
                                           Program section and have corrected                         • On page 57286, the calculation of                Share Hospital Payments for Estimated
                                           those errors for clarification.                         the outlier fixed-loss cost threshold and             FY 2017 DSHs by Hospital Type: Model
                                           B. Summary of Errors in the Addendum                    the national outlier adjustment factors.              DSH $ (In Millions) From FY 2016 To
                                                                                                      • On page 57288, the table titled                  FY 2017’’ and the accompanying
                                             As discussed in section II.D. of this                 ‘‘Change of FY 2016 Standardized                      discussion, we made corrections to
                                           correcting document, we made technical                  Amounts to the FY 2017 Standardized                   address technical and formatting errors
                                           errors with regard to the calculation of                Amounts’’.                                            in the estimated impacts resulting from
                                           Factor 3 of the uncompensated care                         On pages 57291 and 57293 through                   inadvertent errors in the calculation of
                                           payment methodology. The revisions                      57295, in our discussion of the                       Factor 3 for certain hospitals.
                                           made to address some of these errors                    determination of the Federal hospital                    On pages 57331 through 57332, we
                                           directly affected and required the                      inpatient capital related prospective                 made conforming corrections to Table
                                           recalculation of all the budget neutrality              payment rate update, we have made                     III—Comparison of Total Payments Per
                                           factors and final outlier threshold.                    conforming corrections to the increase                Case [FY 2016 Payments Compared to
                                           Factor 3 is used to determine the                       in the capital Federal rate, the                      FY 2017 Payments].
                                           amount of total uncompensated care                      incremental and cumulative budget                        On page 57342, we made conforming
                                           payment a hospital is eligible to receive               neutrality adjustment factors for                     corrections to the discussion of the
                                           as well as the amount of the                            changes in the GAFs and the MS–DRG                    estimated changes in operating and
                                           uncompensated care payment a hospital                   relative weights, the GAF/MS–DRG                      capital IPPS payments and the
                                           receives per discharge. Per discharge                   budget neutrality adjustment factor (due              accounting statement and table for acute
                                           uncompensated care payments are then                    to the errors in our calculation of the               care hospitals that arose from the
                                           included when determining total                         GAFs, which are computed from the                     corrections of errors and conforming
                                           payments for purposes of all of the                     wage index), the capital Federal rate,                changes as described in sections II.B.
                                           budget neutrality factors and the final                 and the outlier threshold (as discussed               and II.D. of this correcting document.
                                           outlier threshold. Therefore, we made                   previously).
                                           conforming changes to pages 57278                          Also, as a result of these errors, on              D. Summary of Errors in and
                                           through 57280, 57286, and 57291 to take                 pages 57294 and 57295, we have made                   Corrections to Files and Tables Posted
                                           into account the updated per-discharge                  conforming corrections in the tables                  on the CMS Web Site
                                           uncompensated care payments                             showing the comparison of factors and                   We are correcting the errors in the
                                           determined using revised Factor 3                       adjustments for the FY 2016 capital                   following IPPS tables that are listed on
                                           amounts. We made further conforming                     Federal rate and FY 2017 capital Federal              page 57311 of the FY 2017 IPPS/LTCH
                                           corrections to the national outlier                     rate and the proposed FY 2017 capital                 PPS final rule and are available on the
                                           adjustment factors on page 57286 and                    Federal rate and final FY 2017 capital                Internet on the CMS Web site at https://
                                           the table on page 57288 as a result of                  Federal rate.                                         www.cms.gov/Medicare/Medicare-Fee-
                                           these changes. Finally, we made                            On page 57307, we are making                       for-Service-Payment/
                                           conforming corrections to the national                  conforming corrections the fixed-loss                 AcuteInpatientPPS/FY2017-IPPS-Final-
                                           operating standardized amounts.                         amount for site neutral discharges due                Rule-Home-Page.html. The tables that
                                             We made inadvertent errors related to                 to corrections in the IPPS rates and                  are available on the Internet have been
                                           the MGCRB reclassification status of one                factors discussed previously.                         updated to reflect the revisions
                                           provider as well as the status of three                    On page 57312, we have made                        discussed in this correcting document.
                                           providers reclassified as urban to rural                conforming corrections to the national                  Table 2—Case-Mix Index and Wage
ehiers on DSK5VPTVN1PROD with RULES




                                           under section 1886(d)(8)(E) of the Act                  operating standardized amounts and                    Index Table—FY 2017. Because the
                                           (codified in the regulations under                      capital standard Federal payment rate                 uncompensated care and reclassification
                                           § 412.103 and hereinafter referred to as                (which also include the rates payable to              errors discussed in section II.B. of this
                                           § 412.103).                                             hospitals located in Puerto Rico) in                  correction document required that we
                                             Specifically, the reclassification status             Tables 1A, 1B, 1C, and 1D as a result of              recalculate the rural and imputed floor
                                           in the FY 2017 IPPS/LTCH PPS final                      the conforming corrections to certain                 budget neutrality factor, we are


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                                                            Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                        68949

                                           correcting the values in the column                     FinalRule-Home-Page-Items/FY2017-                     Threshold, and ‘‘IPPS Comparable
                                           titled FY 2017 Wage Index for all                       IPPSFinal-Rule-Data-Files.html, the data              Threshold’’ for LTCH PPS Discharges
                                           providers. For the three providers for                  used to calculate each hospital’s Factor              Occurring from October 1, 2016 through
                                           which we are applying urban to rural                    3, total uncompensated care payment,                  September 30, 2017. We are correcting
                                           reclassification under § 412.103, we are                and estimated uncompensated care                      this table by correcting typographical
                                           correcting the values in the column                     payment per discharge.                                errors for MS–LTC–DRGs 627 and 658
                                           titled ‘‘FY 2017 Wage Index’’, inserting                   Shortly after the publication of the               in the columns titled ‘‘Relative Weight,’’
                                           the rural reclassified CBSA in the                      FY2017 IPPS/LTCH PPS final rule, we                   ‘‘Geometric Average Length of Stay,’’
                                           column titled ‘‘Reclassified/                           discovered that, in calculating Factor 3              ‘‘Short-Stay Outlier (SSO) Threshold,’’
                                           Redesignated CBSA’’, and inserting a                    of the uncompensated care payment                     and ‘‘IPPS Comparable Threshold.’’
                                           ‘‘Y’’ in the column titled ‘‘Hospital                   methodology, we had understated the
                                                                                                   low-income insured days of hospitals                  III. Waiver of Proposed Rulemaking
                                           Reclassified as Rural Under Section
                                                                                                   that merged after 2011 with one                       and Delay in Effective Date
                                           1886(d)(8)(E) of the Act (§ 412.103)’’.
                                           For the provider that withdrew its                      surviving provider number because we                     We ordinarily publish a notice of
                                           MGCRB reclassification for FY 2017, we                  inadvertently excluded the low income                 proposed rulemaking in the Federal
                                           are revising the wage index in the                      insured days of acquired hospitals from               Register to provide a period for public
                                           column titled FY 2017 Wage Index, and                   the low income insured days used in the               comment before the provisions of a rule
                                           we are removing the MGCRB flag in the                   Factor 3 calculation of surviving                     take effect in accordance with section
                                           column titled MGCRB Reclass.                            hospitals that were projected to receive              553(b) of the Administrative Procedure
                                              Table 3—Wage Index Table by                          Medicare DSH in FY 2017. In addition,                 Act (APA) (5 U.S.C. 553(b)). However,
                                           CBSA—FY 2017. Because the                               we discovered that we had calculated a                we can waive this notice and comment
                                           uncompensated care and reclassification                 Factor 3 for hospitals that have ceased               procedure if the Secretary finds, for
                                           errors discussed in section II.B. of this               operations and erroneously calculated                 good cause, that the notice and
                                           correction document required that we                    Factor 3 using Medicaid days reported                 comment process is impracticable,
                                           recalculate the rural and imputed floor                 on Worksheet S–3 instead of Worksheet                 unnecessary, or contrary to the public
                                           budget neutrality factor, we are making                 S–2 of certain hospitals’ FY 2013 cost                interest, and incorporates a statement of
                                           corresponding changes to the wage                       reports. We are revising Factor 3 for all             the finding and the reasons therefore in
                                           indexes and GAFs of all CBSAs listed in                 hospitals to correct these errors. These              the notice.
                                           Table 3. Specifically, we are correcting                corrections to the uncompensated care                    Section 553(d) of the APA ordinarily
                                           the values and flags in the columns                     payments impacted the calculation of                  requires a 30-day delay in the effective
                                           titled ‘‘Wage Index’’, ‘‘Reclassified Wage              all the budget neutrality factors as well             date of final rules after the date of their
                                           Index’’, ‘‘GAF’’, ‘‘Reclassified GAF’’,                 as the outlier fixed-loss cost threshold              publication in the Federal Register.
                                           ‘‘Pre-Frontier and/or Pre-Rural Floor                   for outlier payments.                                 This 30-day delay in effective date can
                                           Wage Index’’ and ‘‘Eligible for Rural                      In addition, we discovered that we                 be waived, however, if an agency finds
                                           Floor Wage Index’’.                                     had inadvertently excluded the                        for good cause that the delay is
                                              Table 6B—New Procedure Codes for                     Medicaid days from the 2011 cost report               impracticable, unnecessary, or contrary
                                           FY 2017. In Table 6B—New Procedure                      for a provider as well as the Medicaid                to the public interest, and the agency
                                           Codes, we inadvertently listed the                      days from the 2012 cost report for                    incorporates a statement of the findings
                                           incorrect MS–DRG assignment for 13                      another provider from the calculation of              and its reasons in the rule issued.
                                           ICD–10–PCS procedure codes that                         Factor 3. Due to technical errors by our                 We believe that this correcting
                                           describe endovascular thrombectomy                      Medicare Administrative Contractors                   document does not constitute a rule that
                                           procedures of the lower limb involving                  the Medicaid days from these cost                     would be subject to the APA notice and
                                           a bifurcation. We are correcting the MS–                reports were not included in the March                comment or delayed effective date
                                           DRG assignment of these 13 ICD–10–                      2016 update of HCRIS. We projected                    requirements. This correcting document
                                           PCS codes in Table 6B.                                  that both providers would be eligible to              corrects technical and typographic
                                              Table 10—New Technology Add-On                       receive Medicare DSH in FY 2017.                      errors in the preamble, addendum,
                                           Payment Thresholds for Applications                     Accordingly, we are revising Factor 3                 payment rates, tables, and appendices
                                           for FY 2018. We are correcting the                      for all hospitals to reflect these                    included or referenced in the FY 2017
                                           thresholds in this table as a result of the             Medicaid days; however, the impact of                 IPPS/LTCH PPS final rule but does not
                                           corrections to the operating                            these revisions is too small to affect                make substantive changes to the policies
                                           standardized amounts discussed in                       other aspects of the IPPS ratesetting,                or payment methodologies that were
                                           section II.B. of this correcting document.              such as the calculation of the fixed-loss             adopted in the final rule. As a result,
                                              Table 18—FY 2017 Medicare DSH                        threshold for outlier payments.                       this correcting document is intended to
                                           Uncompensated Care Payment Factor 3                        We are also correcting the errors in               ensure that the information in the FY
                                           and Projected DSH Eligibility. For the                  the following LTCH PPS table that is                  2017 IPPS/LTCH PPS final rule
                                           FY 2017 IPPS/LTCH PPS final rule, we                    listed on page 57311 of the FY 2017                   accurately reflects the policies adopted
                                           published a list of hospitals that we                   IPPS/LTCH PPS final rule and is                       in that final rule.
                                           identified to be subsection (d) hospitals               available on the Internet on the CMS                     In addition, even if this were a rule to
                                           and subsection (d) Puerto Rico hospitals                Web site at https://www.cms.gov/                      which the notice and comment
                                           eligible to receive empirically justified               Medicare/Medicare-Fee-for-Service-                    procedures and delayed effective date
                                           Medicare DSH payment adjustments                        Payment/LongTermCareHospitalPPS/                      requirements applied, we find that there
                                           and uncompensated care payments for                     index.html under the list item for                    is good cause to waive such
                                           FY 2017. We also published, in the                      regulation number CMS–1655–F. The                     requirements. Undertaking further
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                                           Supplemental Medicare DSH File                          table that is available on the Internet has           notice and comment procedures to
                                           located in the FY 2017 IPPS/LTCH PPS                    been updated to reflect the revisions                 incorporate the corrections in this
                                           final rule data files page at https://                  discussed in this correcting document.                document into the final rule or delaying
                                           www.cms.gov/Medicare/Medicare-                             Table 11—MS–LTC–DRGs, Relative                     the effective date would be contrary to
                                           Feefor-Service-Payment/                                 Weights, Geometric Average Length of                  the public interest because it is in the
                                           AcuteInpatientPPS/FY2017-IPPS-                          Stay, Short Stay Outlier (SSO)                        public’s interest for providers to receive


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                                           68950             Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                           appropriate payments in as timely a                               (2) Lines 9 and 10, the phrase, ‘‘18               codes, the change would not have any
                                           manner as possible, and to ensure that                         ICD–10–CN diagnosis codes in the                      impact.’’.
                                           the FY 2017 IPPS/LTCH PPS final rule                           following table be reassigned’’ is                       d. Lines 40 through 41, the phrase
                                           accurately reflects our policies.                              corrected to read ‘‘18 ICD–10–CM                      ‘‘not finalizing the proposal to change
                                           Furthermore, such procedures would be                          diagnosis codes in the following table                the two’’ is corrected to read ‘‘not
                                           unnecessary, as we are not altering our                        also be reassigned’’.                                 changing the designation of the two’’.
                                           payment methodologies or policies, but                            b. Lower half of the page, first                      5. On page 56803, bottom of the
                                           rather, we are simply implementing                             column, last paragraph—                               page—
                                           correctly the policies that we previously                         (1) Lines 6 and 7, the phrase                         a. First column, last paragraph, lines
                                           proposed, received comment on, and                             ‘‘describing procedures performed on’’                7 and 8, the phrase ‘‘removing the 34
                                           subsequently finalized. This correcting                        is corrected to read ‘‘describing                     codes’’ is corrected to read ‘‘removing
                                           document is intended solely to ensure                          conditions affecting’’.                               32 of the 34 codes’’.
                                           that the FY 2017 IPPS/LTCH PPS final                              (2) Line 14, the phrase ‘‘MS DRGs                     b. Second column, first partial
                                           rule accurately reflects these payment                         091, 092 and 093.’’ is corrected to read              paragraph—
                                           methodologies and policies. Therefore,                         ‘‘MS–DRGs 091, 092, and 093 because                      (1) Lines 5 and 6, the phrase ‘‘34 non-
                                           we believe we have good cause to waive                         they are also nervous system codes.’’                 lower’’ is corrected to read ‘‘32 non-
                                           the notice and comment and effective                              3. On page 56797, first column, first
                                                                                                                                                                lower’’.
                                           date requirements.                                             paragraph, lines 15 and 16, the phrase
                                                                                                          ‘‘These 18 codes also are reflected in                   (2) Lines 8 and 9, the phrase ‘‘These
                                           IV. Correction of Errors                                       Table 6E’’ is corrected to read ‘‘These 18            34 non-lower’’ is corrected to read
                                                                                                          codes are reflected in Table 6A’’.                    ‘‘These 32 non-lower’’.
                                             In FR Doc. 2016–18476 of August 22,                                                                                   (3) Line 13, after the phrase ‘‘for FY
                                                                                                             4. On page 56801, second column,
                                           2016 (81 FR 56761), we are making the                                                                                2017.’’ the paragraph is corrected by
                                                                                                          second full paragraph—
                                           following corrections:                                                                                               adding sentences to read as follows:
                                                                                                             a. Lines 11 and 12, the phrase
                                           A. Corrections of Errors in the Preamble                       ‘‘performing such procedures because                     ‘‘Two of the procedure codes
                                                                                                          loop’’ is corrected to read ‘‘performing              identified by the commenter, ICD–10–
                                              1. On page 56775, third column,                                                                                   PCS procedure codes 04CT3ZZ
                                                                                                          such procedures because, as noted in
                                           second bulleted paragraph, line 25, the                                                                              (Extirpation of matter from right
                                                                                                          the FY 2017 IPPS/LTCH PPS proposed
                                           figure ‘‘$50.4 million’’ is corrected to                                                                             peroneal artery, percutaneous approach)
                                                                                                          rule, loop’’.
                                           read ‘‘$56.4 million’’.                                           b. Lines 25 and 26, the phrase ‘‘were              and 04CU3ZZ (Extirpation of matter
                                              2. On page 56796—                                           not able to finalize that specific                    from left peroneal artery, percutaneous
                                              a. Top half of the page, third column,                      request.’’ is corrected to read ‘‘were not            approach) describe endovascular
                                           third full paragraph,                                          able to replicate that specific request in            thrombectomy of lower limbs and are
                                              (1) Lines 4 and 5, the phrase                               the ICD–9–CM based MS–DRGs.’’.                        not non-lower limb procedure codes.’’.
                                           ‘‘describing similar conditions’’ is                              c. Lines 26 through 29, the sentence                  c. Third column, first full paragraph,
                                           corrected to read ‘‘displayed in Table                         ‘‘Rather, we finalized an alternative                 line 11, the phrase ‘‘34 procedure’’ is
                                           6A—New Diagnosis Codes associated                              option, which was to change the                       corrected to read ‘‘32 procedure’’.
                                           with the proposed rule (which is                               designation for four of the six codes                    6. On page 56804, top of page, the
                                           available via the Internet on the CMS                          requested.’’ is corrected to read ‘‘Rather,           table titled ‘‘ICD–10–PCS
                                           Web site at: http://www.cms.gov/                               we proposed an alternative option,                    ENDOVASCULAR THROMBECTOMY
                                           Medicare/Medicare-Fee-for-Service-                             which was to change the designation for               PROCEDURE CODES REASSIGNED TO
                                           Payment/AcuteInpatientPPS/                                     four of the six codes requested, because              MS–DRGs 270, 271, AND 272 FOR FY
                                           index.html) that describe similar                              we believed that if we limited the                    2017’’ is corrected by adding the
                                           conditions’’.                                                  change in designation to these four                   following entries:

                                           04CK3Z6 ......................    Extirpation   of   Matter   from   Right Femoral Artery, Bifurcation, Percutaneous Approach.
                                           04CL3Z6 .......................   Extirpation   of   Matter   from   Left Femoral Artery, Bifurcation, Percutaneous Approach.
                                           04CM3Z6 ......................    Extirpation   of   Matter   from   Right Popliteal Artery, Bifurcation, Percutaneous Approach.
                                           04CN3Z6 ......................    Extirpation   of   Matter   from   Left Popliteal Artery, Bifurcation, Percutaneous Approach.
                                           04CP3Z6 ......................    Extirpation   of   Matter   from   Right Anterior Tibial Artery, Bifurcation, Percutaneous Approach.
                                           04CQ3Z6 ......................    Extirpation   of   Matter   from   Left Anterior Tibial Artery, Bifurcation, Percutaneous Approach.
                                           04CR3Z6 ......................    Extirpation   of   Matter   from   Right Posterior Tibial Artery, Bifurcation, Percutaneous Approach.
                                           04CS3Z6 ......................    Extirpation   of   Matter   from   Left Posterior Tibial Artery, Bifurcation, Percutaneous Approach.
                                           04CT3Z6 ......................    Extirpation   of   Matter   from   Right Peroneal Artery, Bifurcation, Percutaneous Approach.
                                           04CT3ZZ ......................    Extirpation   of   Matter   from   Right Peroneal Artery, Percutaneous Approach.
                                           04CU3Z6 ......................    Extirpation   of   Matter   from   Left Peroneal Artery, Bifurcation, Percutaneous Approach.
                                           04CU3ZZ ......................    Extirpation   of   Matter   from   Left Peroneal Artery, Percutaneous Approach.
                                           04CV3Z6 ......................    Extirpation   of   Matter   from   Right Foot Artery, Bifurcation, Percutaneous Approach.
                                           04CW3Z6 .....................     Extirpation   of   Matter   from   Left Foot Artery, Bifurcation, Percutaneous Approach.
                                           04CY3Z6 ......................    Extirpation   of   Matter   from   Lower Artery, Bifurcation, Percutaneous Approach.



                                             7. On page 56821, middle of the                                b. Third column, first partial                      VERSION 34 ICD–10 MS–DRGs 466,
                                           page—                                                          paragraph, line 3, the phrase ‘‘following             467, and 468: PROPOSED NEW KNEE
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                                             a. Second column, first partial                              58’’ is corrected to read ‘‘following 57’’.           REVISION ICD–10–PCS
                                           paragraph, line 2, the phrase ‘‘identified                       8. On pages 56821 through 56823, in                 COMBINATIONS’’, the codes (in the 4th
                                           58’’ is corrected to read ‘‘identified 57’’.                   the table titled ‘‘ICD–10–PCS CODE                    column) for the following entries are
                                                                                                          PAIRS PROPOSED TO BE ADDED TO                         corrected to read as follows:




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                                                               Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                         68951

                                                   ICD–10–PCS CODE PAIRS PROPOSED TO BE ADDED TO VERSION 34 ICD–10 MS–DRGS 466, 467, AND 468:
                                                                     PROPOSED NEW KNEE REVISION ICD–10–PCS COMBINATIONS
                                                 Code                                      Code description                                               Code                          Code description

                                           0SPD08Z ......         Removal of Spacer from Left Knee Joint, Open Ap-                            and    0SRU0J9 ......    Replacement of Left Knee Joint, Femoral Surface
                                                                   proach.                                                                                               with Synthetic Substitute, Cemented, Open Ap-
                                                                                                                                                                         proach.
                                           0SPD38Z ......         Removal of Spacer from                          Left    Knee       Joint,   and    0SRU0J9 ......    Replacement of Left Knee Joint, Femoral Surface
                                                                   Percutaneous Approach.                                                                                with Synthetic Substitute, Cemented, Open Ap-
                                                                                                                                                                         proach.
                                           0SPD48Z ......         Removal of Spacer from Left Knee                                   Joint,   and    0SRU0J9 ......    Replacement of Left Knee Joint, Femoral Surface
                                                                   Percutaneous Endoscopic Approach.                                                                     with Synthetic Substitute, Cemented, Open Ap-
                                                                                                                                                                         proach.



                                              9. On page 56823, lower half of the                                    11. On page 56895, third column, first                    12. On page 56897, third column,
                                           page—                                                                  partial paragraph—                                        third full paragraph, line 11, the phrase
                                              a. First column, second paragraph,                                     a. Lines 8 and 9, the phrase ‘‘a unique                ‘‘procedure code XW03331.’’ is
                                           line 10, the phrase ‘‘58 new’’ is                                      ICD–10–PCS procedure code’’ is                            corrected to read ‘‘procedure codes
                                           corrected to read ‘‘57 new’’.                                          corrected to read ‘‘two unique ICD–10–                    XW03331 and XW04331.’’.
                                              b. Second column—                                                   PCS procedure codes’’.                                       13. On page 56927—
                                              (1) First partial paragraph, line 11, the                              b. Lines 10 through 15, the sentence
                                           phrase ‘‘58 new’’ is corrected to read ‘‘                                                                                           a. Second column, last partial
                                                                                                                  ‘‘The approved procedure code is                          paragraph, line 5 the phrase ‘‘265
                                           new’’.                                                                 XW0331 (Introduction of Idarucizumab,
                                              (2) First full paragraph, lines 3 and 4,                                                                                      hospitals’’ is corrected to read ‘‘264
                                                                                                                  Dabigatran reversal agent into central                    hospitals’’.
                                           the phrase ‘‘58 new’’ is corrected to read                             vein, percutaneous approach, New
                                           ‘‘57 new’’.                                                            Technology Group 1).’’ is corrected to                       b. Third column, first partial
                                              10. On page 56858, top of the page,                                 read ‘‘The approved procedure codes                       paragraph, line 12, the phrase ‘‘817
                                           the untitled table is corrected by adding                              are XW0331 (Introduction of                               hospitals’’ is corrected to read ‘‘816
                                           the following entry after line 34 (which                               Idarucizumab, Dabigatran reversal agent                   hospitals’’.
                                           is the entry for MDC 5, MS–DRG 262):                                   into peripheral vein, percutaneous                           14. On page 57002, bottom of the
                                                                                                                  approach, New Technology Group 1)                         page, the table titled ‘‘PREVIOUSLY
                                                MDC             MS–DRG               MS–DRG Title                 and XW04331 (Introduction of                              ADOPTED AND NEWLY FINALIZED
                                                                                                                  Idarucizumab, Dabigatran reversal agent                   BASELINE AND PERFORMANCE
                                           5                            265      AICD Lead Proce-
                                                                                   dures.
                                                                                                                  into central vein, percutaneous                           PERIODS FOR THE FY 2021 PROGRAM
                                                                                                                  approach, New Technology Group 1).’’.                     YEAR’’ is corrected to read as follows:

                                            PREVIOUSLY ADOPTED AND NEWLY FINALIZED BASELINE AND PERFORMANCE PERIODS FOR THE FY 2021 PROGRAM YEAR
                                                                       Domain                                                           Baseline period                                  Performance period

                                           Clinical Care
                                           • Mortality (MORT–30–AMI, MORT–30–HF,                                   • July 1, 2011–June 30, 2014 .........................   • July 1, 2016–June 30, 2019
                                             MORT–30–COPD) *
                                           • THA/TKA * ......................................................      • April 1, 2011–March 31, 2014 ......................    • April 1, 2016–March 31, 2019
                                           • MORT–30–PN (updated cohort) ....................                      • July 1, 2012–June 30, 2015 .........................   • September 1, 2017–June 30, 2019
                                           Efficiency and Cost Reduction
                                           • MSPB .............................................................    • January 1, 2017–December 31, 2017 ..........           • January 1, 2019–December 31, 2019
                                           • Payment (AMI Payment and HF Payment) ...                              • July 1, 2012–June 30, 2015 .........................   • July 1, 2017–June 30, 2019
                                               * Previously adopted baseline and performance periods that remain unchanged (80 FR 49562 through 49563).


                                              15. On page 57033, first column, last                                  (1). Line 14, the phrase ‘‘This                        potentially preventable readmissions
                                           paragraph, lines 2 through 4, the web                                  measure’’ is corrected to read ‘‘The Drug                 (PPRs) and discharge data.’’ is corrected
                                           link ‘‘http://www.cms.gov/Medicare/                                    Regimen Review Conducted with                             to read ‘‘with information, such as
                                           Medicare-Fee-for-ServicePayment/                                       Follow-Up for Identified Issues-PAC                       unadjusted counts of potentially
                                           AcuteInpatientPPS/dgme.html’’ is                                       LTCH QRP quality measure’’.                               preventable readmissions (PPRs) and
                                           corrected to read ‘‘http://www.cms.gov/                                   (2) Lines 23 through 25, the phrase ‘‘                 discharge data, more frequently.’’
                                           Medicare/Medicare-Fee-for-Service-                                     and Potentially Preventable 30-Day                          18. On page 57199, first column,
                                           Payment/AcuteInpatientPPS/                                             Post-Discharge Readmission Measure for                    second full paragraph, lines 3 and 4, the
                                           dgme.html.’’                                                           LTCH QRP,’’ is corrected to read ‘‘,                      phrase ‘‘SES or SDS status.’’ is corrected
                                              16. On page 57195—                                                  Potentially Preventable 30-Day Post-                      to read ‘‘SES or SDS.’’
                                                                                                                  Discharge Readmission Measure for                           19. On page 57211, third column,
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                                              a. First column, last partial paragraph,                            LTCH QRP and Medicare Spending Per                        second full paragraph, line 16, the
                                           lines 4 and 5, the phrase ‘‘it                                         Beneficiary-PAC LTCH QRP,’’.                              phrase ‘‘to discharge’’ is corrected to
                                           recommended’’ is corrected to read ‘‘the                                  17. On page 57196, third column, first                 read ‘‘to be discharged’’.
                                           commenters recommended’’.                                              full paragraph, lines 13 through 16, the                    20. On page 57213—
                                              b. Third column, third full                                         phrase ‘‘with information more                              a. Second column, last partial
                                           paragraph—                                                             frequently, such as unadjusted counts of                  paragraph, lines 6 through 8, the phrase


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                                           68952            Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                           ‘‘and a SNF stay within a 30-day                        corrected to read ‘‘however, the                         b. Third column, third full paragraph,
                                           window, the SNF stay is a candidate to                  measure’’.                                            line 12, the figure ‘‘0.988224’’ is
                                           for’’ is corrected to read ‘‘and then a                    b. Third column, first full paragraph—             corrected to read ‘‘0.988136’’.
                                           SNF stay within a 30-day window, the                       (1) Line 4, the word ‘‘facilities’’ is                3. On page 57280—
                                           SNF stay is a candidate for’’.                          corrected to read ‘‘facility’s’’.
                                                                                                      (2) Line 22, the phrase ‘‘collected                   a. First column, fifth full paragraph,
                                              b. Third column, after the last                                                                            line 4, the figure ‘‘0.993200’’ is
                                           paragraph, Footnote 280, lines 1 and 2,                 admission’’ is corrected to read
                                                                                                   ‘‘collected at admission’’.                           corrected to read ‘‘0.991987’’.
                                           the measure name ‘‘Hospital-Wide All-
                                           Cause Readmission Measure (HWR)                            25. On page 57223—                                    b. Third column, second full
                                           (CMS/Yale).’’ is corrected to read                         a. First column, second paragraph—                 paragraph,
                                                                                                      (1) Lines 1 through 4, the phrase                     (1) Line 3, the figure ‘‘0.999994’’ is
                                           ‘‘Hospital-Wide All-Cause Unplanned
                                                                                                   ‘‘Since the time of the MAP                           corrected to read ‘‘0.999997’’.
                                           Readmission Measure (HWR) (CMS/
                                                                                                   consideration, with our measure                          (2) Line 6, the figure ‘‘0.999994’’ is
                                           Yale).’’
                                              21. On page 57218, third column, first               contractor, we tested this measure in a               corrected to read ‘‘0.999997’’.
                                           full paragraph, lines 4 and 5, the phrase               pilot test involving twelve PAC
                                                                                                   facilities,’’ is corrected to read ‘‘Since               4. On page 57286—
                                           ‘‘The commenter was correct in its                                                                               a. Second column, last paragraph—
                                           interpretation of’’ is corrected to read                the time of the NQF-convened MAP
                                                                                                   consideration we have further tested                     (1) Line 6, the figure ‘‘$23,570’’ is
                                           ‘‘The commenter’s interpretation was
                                                                                                   this measure in a pilot test involving                corrected to read ‘‘$23,573’’.
                                           correct regarding’’.
                                              22. On page 57220, second column,                    twelve PAC facilities’’.                                 (2) Line 8, the figure
                                                                                                      (2) Lines 7 and 8, the phrase, ‘‘record            ‘‘$83,347,416,971’’ is corrected to read
                                           second footnoted full paragraph
                                                                                                   collection system’’ is corrected to read              ‘‘$83,364,479,923’’.
                                           (Footnote 311), lines 1 through 6, the
                                                                                                   ‘‘records system’’.                                      (3) Line 9, the figure ‘‘$4,479,256,519’’
                                           footnote ‘‘311Greenwald, J.L.,                             b. Second column, third full
                                           Halasyamani, L., Greene, J., LaCivita, C.,                                                                    is corrected to read ‘‘$4,479,256,368’’.
                                                                                                   paragraph, lines 9 and 10, the phrase
                                           et al. (2010). Making inpatient                         ‘‘PAC facility.’’ is corrected to read                   b. Third column—
                                           medication reconciliation patient                       ‘‘PAC facility. We appreciate MedPAC                     (1) First partial paragraph, line 11, the
                                           centered, clinically relevant and                       and other commenters’ recommendation                  figure ‘‘$23,570’’ is corrected to read
                                           implementable: A consensus statement                    for a quality measure that assesses post-             ‘‘$23,573’’.
                                           on key principles and necessary first                   discharge medication communication                       (2) Following the third full paragraph,
                                           steps. Journal of Hospital Medicine,                    with primary care providers for patients              the untitled table is corrected to read as
                                           5(8), 477–485.’’ is corrected to read                   discharged to home.’’                                 follows:
                                           ‘‘311Institute of Medicine. Preventing
                                           Medication Errors. Washington, DC:                      B. Correction of Errors in the Addendum
                                                                                                                                                                                Operating
                                           National Academies Press; 2006.’’                                                                                                                   Capital
                                                                                                      1. On page 57278, third column, fifth                                   standardized   Federal rate
                                              23. On page 57221, second column,                    full paragraph,                                                              amounts
                                           second full paragraph, lines 3 and 4, the                  a. Line 3, the figure ‘‘0.999079’’ is
                                           phrase ‘‘cross-setting and quality                                                                            National .........    0.948998        0.938602
                                                                                                   corrected to read ‘‘0.999078’’.
                                           measure’’ is corrected to read ‘‘cross-                    b. Line 9, the figure ‘‘0.999079’’ is
                                           setting quality measure’’.                              corrected to read ‘‘0.999078’’.                          5. On page 57288, middle of the page,
                                              24. On page 57222—                                      2. On page 57279—                                  the table titled ‘‘CHANGE OF FY 2016
                                              a. Second column, first full paragraph,                 a. Second column, first full paragraph,            STANDARDIZED AMOUNTS TO THE
                                           lines 11 and 12, the phrase ‘‘however,                  line 9, the figure ‘‘1.000209’’ is                    FY 2017 STANDARDIZED AMOUNTS’’,
                                           the adoption of the measure’’ is                        corrected to read ‘‘1.00021’’.                        is corrected to read as follows:

                                                               CHANGE OF FY 2016 STANDARDIZED AMOUNTS TO THE FY 2017 STANDARDIZED AMOUNTS
                                                                             Hospital submitted quality        Hospital submitted quality        Hospital did NOT submit         Hospital did NOT submit
                                                                             data and is a meaningful             data and is NOT a               quality data and is a         quality data and is NOT a
                                                                                     EHR user                   meaningful EHR user               meaningful EHR user             meaningful EHR user

                                           FY 2016 Base Rate after          If Wage Index is Greater          If Wage Index is Greater          If Wage Index is Greater        If Wage Index is Greater
                                             removing:                         Than 1.0000:                      Than 1.0000:                      Than 1.0000:                    Than 1.0000:
                                           1. FY 2016 Geographic            Labor (69.6 percent):             Labor (69.6 percent):             Labor (69.6 percent):           Labor (69.6 percent):
                                             Reclassification Budget           $4,394.09.                        $4,394.09.                        $4,394.09.                      $4,394.09.
                                             Neutrality (0.988169).         Nonlabor (30.4 percent):          Nonlabor (30.4 percent):          Nonlabor (30.4 percent):        Nonlabor (30.4 percent):
                                           2. FY 2016 Rural Commu-             $1,919.26.                        $1,919.26.                        $1,919.26.                      $1,919.26.
                                             nity Hospital Demonstra-
                                             tion Program Budget
                                             Neutrality (0.999837).
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                                                            Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                                        68953

                                                      CHANGE OF FY 2016 STANDARDIZED AMOUNTS TO THE FY 2017 STANDARDIZED AMOUNTS—Continued
                                                                             Hospital submitted quality                Hospital submitted quality                Hospital did NOT submit                   Hospital did NOT submit
                                                                             data and is a meaningful                     data and is NOT a                       quality data and is a                   quality data and is NOT a
                                                                                     EHR user                           meaningful EHR user                       meaningful EHR user                       meaningful EHR user

                                           3. Cumulative FY 2008, FY        If Wage Index is less Than                If Wage Index is less Than                If Wage Index is less Than                If Wage Index is less Than
                                             2009, FY 2012, FY                 or Equal to 1.0000:                       or Equal to 1.0000:                       or Equal to 1.0000:                       or Equal to 1.0000:
                                             2013, FY 2014, FY 2015         Labor (62 percent):                       Labor (62 percent):                       Labor (62 percent):                       Labor (62 percent):
                                             and FY 2016 Docu-                 $3,914.28.                                $3,914.28.                                $3,914.28.                                $3,914.28.
                                             mentation and Coding           Nonlabor (38 percent):                    Nonlabor (38 percent):                    Nonlabor (38 percent):                    Nonlabor (38 percent):
                                             Adjustments as Required           $2,399.07.                                $2,399.07.                                $2,399.07.                                $2,399.07.
                                             under Sections
                                             7(b)(1)(A) and 7(b)(1)(B)
                                             of Public Law 110–90
                                             and Documentation and
                                             Coding Recoupment Ad-
                                             justment as required
                                             under Section 631 of the
                                             American Taxpayer Re-
                                             lief Act of 2012 (0.9255).
                                           4. FY 2016 Operating
                                             Outlier Offset (0.948998).
                                           5. FY 2016 New Labor
                                             Market Delineation
                                             Wage Index Transition
                                             Budget Neutrality Factor
                                             (0.999998).
                                           6. FY 2017 2-Midnight
                                             Rule Permanent Adjust-
                                             ment (1/0.998).
                                           FY 2017 Update Factor .....      1.0165 ...............................    0.99625 .............................     1.00975 .............................     0.9895.
                                           FY 2017 MS-DRG Re-               0.999078 ...........................      0.999078 ...........................      0.999078 ...........................      0.999078.
                                             calibration Budget Neu-
                                             trality Factor.
                                           FY 2017 Wage Index               1.00021 .............................     1.00021 .............................     1.00021 .............................     1.00021.
                                             Budget Neutrality Factor.
                                           FY 2017 Reclassification         0.988136 ...........................      0.988136 ...........................      0.988136 ...........................      0.988136.
                                             Budget Neutrality Factor.
                                           FY 2017 Operating Outlier        0.948998 ...........................      0.948998 ...........................      0.948998 ...........................      0.98998.
                                             Factor.
                                           Cumulative Factor: FY            0.9118 ...............................    0.9118 ...............................    0.9118 ...............................    0.9118.
                                             2008, FY 2009, FY
                                             2012, FY 2013, FY
                                             2014, FY 2015, FY 2016
                                             and FY 2017 Docu-
                                             mentation and Coding
                                             Adjustment as Required
                                             under Sections
                                             7(b)(1)(A) and 7(b)(1)(B)
                                             of Public Law 110–90
                                             and Documentation and
                                             Coding Recoupment Ad-
                                             justment as required
                                             under Section 631 of the
                                             American Taxpayer Re-
                                             lief Act of 2012.
                                           FY 2017 New Labor Mar-           0.999997 ...........................      0.999997 ...........................      0.999997 ...........................      0.999997.
                                             ket Delineation Wage
                                             Index 3-Year Hold Harm-
                                             less Transition Budget
                                             Neutrality Factor.
                                           FY 2017 2-Midnight Rule          1.006 .................................   1.006 .................................   1.006 .................................   1.006.
                                             One-Time Prospective
                                             Increase.
                                           National Standardized            Labor: $3,839.23 ...............          Labor: $3,762.75 ...............          Labor: $3,8143.74 .............           Labor: $3,737.25.
                                             Amount for FY 2017 if          Nonlabor: $1,676.91 .........             Nonlabor: $1,643.50 .........             Nonlabor: $1,665.77 .........             Nonlabor: $1,632.37.
                                             Wage Index is Greater
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                                             Than 1.0000; Labor/Non-
                                             Labor Share Percentage
                                             (69.6/30.4).




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                                           68954                Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                                          CHANGE OF FY 2016 STANDARDIZED AMOUNTS TO THE FY 2017 STANDARDIZED AMOUNTS—Continued
                                                                                       Hospital submitted quality                  Hospital submitted quality           Hospital did NOT submit             Hospital did NOT submit
                                                                                       data and is a meaningful                       data and is NOT a                  quality data and is a             quality data and is NOT a
                                                                                               EHR user                             meaningful EHR user                  meaningful EHR user                 meaningful EHR user

                                           National Standardized                      Labor: $3,420.01 ...............            Labor: $3,351.88 ...............     Labor: $3,397.30 ...............    Labor: $3,329.16.
                                             Amount for FY 2017 if                    Nonlabor: $2,096.13 .........               Nonlabor: $2,054.37 .........        Nonlabor: $2,082.21 .........       Nonlabor: $2,040.46.
                                             Wage Index is less Than
                                             or Equal to 1.0000;
                                             Labor/Non-Labor Share
                                             Percentage (62/38).



                                              6. On page 57291—                                                       b. First full paragraph, line 16, the                          (b) Second bulleted paragraph, line 6,
                                              a. First column, second full                                         figure ‘‘0.9851’’ is corrected to read                         the figure ‘‘0.9991’’ is corrected to read
                                           paragraph, line 15, the figure                                          ‘‘0.9850’’.                                                    ‘‘0.9990’’.
                                           ‘‘0.999079’’ is corrected to read                                          c. Last paragraph—                                             (2) Third column, second full
                                           ‘‘0.999078’’.                                                              (1) Line 2, the figure ‘‘0.9991’’is                         paragraph—
                                              b. Third column, first full paragraph                                corrected to read ‘‘0.9990’’.                                     (a) Line 13, the figure, ‘‘0.09’’ is
                                           line 6, the figure ‘‘1.84’’ is corrected to                                (2) Line 4, ‘‘0.9995’’ is corrected to                      corrected to read ‘‘0.10’’.
                                           read ‘‘1.83’’.                                                          read ‘‘0.9994’’.                                                  (b) Line 26, the figure, ‘‘1.84’’ is
                                                                                                                                                                                  corrected to read ‘‘1.832’’.
                                              7. On page 57293, third column—                                         8. On page 57294—                                              b. Bottom of the page, the table titled
                                              a. First partial paragraph—                                             a. Top of the page—                                         ‘‘COMPARISON OF FACTORS AND
                                              (1) Line 1, the figure ‘‘0.9995’’ is                                    (1) Second column—                                          ADJUSTMENTS: FY 2016 CAPITAL
                                           corrected to read ‘‘0.9994’’.                                              (a) First full paragraph, line 17, the                      FEDERAL RATE AND FY 2017
                                              (2) Line 4, ‘‘0.9855’’ is corrected to                               figure ‘‘$446.81’’ is corrected to read                        CAPITAL FEDERAL RATE’’ is corrected
                                           read ‘‘0.9854’’.                                                        ‘‘$446.79’’.                                                   to read as follows:

                                            COMPARISON OF FACTORS AND ADJUSTMENTS: FY 2016 CAPITAL FEDERAL RATE AND FY 2017 CAPITAL FEDERAL RATE
                                                                                                                                                                                                                         Percent
                                                                                                                                                               FY 2016             FY 2017                Change         change 3

                                           Update Factor 1 ................................................................................................          1.0130              1.009                1.009             0.9
                                           GAF/DRG Adjustment Factor 1 ........................................................................                      0.9976             0.9990               0.9990           ¥0.10
                                           Outlier Adjustment Factor 2 ..............................................................................                0.9365             0.9386               1.0022            0.22
                                           Permanent 2-midnight Policy Adjustment Factor ............................................                                   N/A              1.002                1.002             0.2
                                           One-Time 2-midnight Policy Adjustment Factor ..............................................                                  N/A              1.006                1.006             0.6
                                           Capital Federal Rate ........................................................................................            $438.75            $446.79               1.0183            1.83
                                             1 The update factor and the GAF/DRG budget neutrality adjustment factors are built permanently into the capital Federal rates. Thus, for exam-
                                           ple, the incremental change from FY 2016 to FY 2017 resulting from the application of the 0.9990 GAF/DRG budget neutrality adjustment factor
                                           for FY 2017 is a net change of 0.9990 (or ¥0.10 percent).
                                             2 The outlier reduction factor is not built permanently into the capital Federal rate; that is, the factor is not applied cumulatively in determining
                                           the capital Federal rate. Thus, for example, the net change resulting from the application of the FY 2017 outlier adjustment factor is 0.9386/
                                           0.9365, or 1.0022 (or 0.22 percent).
                                             3 Sum of individual changes may not match percent change in capital rate due to rounding.




                                              9. On page 57295—                                                    ADJUSTMENTS: PROPOSED FY 2017                                  FY 2017 CAPITAL FEDERAL RATE’’ is
                                              a. The top of the page, the table titled                             CAPITAL FEDERAL RATE AND FINAL                                 corrected to read as follows:
                                           ‘‘COMPARISON OF FACTORS AND

                                                  COMPARISON OF FACTORS AND ADJUSTMENTS: PROPOSED FY 2017 CAPITAL FEDERAL RATE AND FINAL FY 2017
                                                                                      CAPITAL FEDERAL RATE
                                                                                                                                                              Proposed              Final                                 Percent
                                                                                                                                                                                                          Change
                                                                                                                                                              FY 2017              FY 2017                                change

                                           Update Factor 1 ................................................................................................          1.0090             1.0090               1.0000            0.00
                                           GAF/DRG Adjustment Factor 1 ........................................................................                      0.9993             0.9990               0.9997           ¥0.03
                                           Outlier Adjustment Factor 2 ..............................................................................                0.9374             0.9386               1.0013            0.13
                                           Permanent 2-midnight Policy Adjustment Factor ............................................                                 1.002              1.002                1.000            0.00
                                           One-Time 2-midnight Policy Adjustment Factor ..............................................                                1.006              1.006                1.000            0.00
                                           Capital Federal Rate ........................................................................................            $446.35            $446.79               1.0010            0.10
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                                              b. Lower three-fourths of the page,                                     10. On page 57307, second column,                             b. Line 35, the figure ‘‘$23,570’’ is
                                           first column, second paragraph, line 21,                                first full paragraph—                                          corrected to read ‘‘$23,573’’.
                                           the figure, ‘‘$23,570.’’ is corrected to                                   a. Line 15, the figure ‘‘$23,570’’ is                         11. On page 57312—
                                           read ‘‘$23,573.’’                                                       corrected to read ‘‘$23,573’’.                                   a. Top of the page—


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                                                               Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                                       68955

                                             (1) Table 1A titled ‘‘NATIONAL                                     NONLABOR (69.6 PERCENT LABOR                                      THAN 1)—FY 2017’’ is corrected to read
                                           ADJUSTED OPERATING                                                   SHARE/30.4 PERCENT NONLABOR                                       as follows:
                                           STANDARDIZED AMOUNTS, LABOR/                                         SHARE IF WAGE INDEX IS GREATER

                                                 TABLE 1A—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR (69.6 PERCENT LABOR
                                                          SHARE/30.4 PERCENT NONLABOR SHARE IF WAGE INDEX IS GREATER THAN 1)—FY 2017
                                             Hospital submitted quality data                      Hospital submitted quality data                   Hospital did NOT submit quality                   Hospital did NOT submit quality
                                             and is a meaningful EHR user                         and is NOT a meaningful EHR                       data and is a meaningful EHR                      data and is NOT a meaningful
                                                (update = 1.65 percent)                                       user                                                user                                           EHR user
                                                                                                   (update = ¥0.375 percent)                           (update = 0.975 percent)                         (update = ¥1.05 percent)
                                                  Labor                   Nonlabor                      Labor                Nonlabor                   Labor                  Nonlabor                   Labor           Nonlabor

                                               $3,839.23                 $1,677.91                 $3,762.75                $1,643.50                 $3,813.74               $1,665.77                 $3,737.25         $1,632.37



                                             (2) Table 1B titled ‘‘NATIONAL                                     NONLABOR (62 PERCENT LABOR                                        THAN OR EQUAL TO 1)—FY 2017’’ is
                                           ADJUSTED OPERATING                                                   SHARE/38 PERCENT NONLABOR                                         corrected to read as follows:
                                           STANDARDIZED AMOUNTS, LABOR/                                         SHARE IF WAGE INDEX IS LESS

                                            TABLE 1B—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR (62 PERCENT LABOR SHARE/
                                                       38 PERCENT NONLABOR SHARE IF WAGE INDEX IS LESS THAN OR EQUAL TO 1)—FY 2017
                                             Hospital submitted quality data                      Hospital submitted quality data                   Hospital did NOT submit quality                   Hospital did NOT submit quality
                                             and is a meaningful EHR user                         and is NOT a meaningful EHR                       data and is a meaningful EHR                      data and is NOT a meaningful
                                                (update = 1.65 percent)                                       user                                                user                                           EHR user
                                                                                                   (update = ¥0.375 percent)                           (update = 0.975 percent)                         (update = ¥1.05 percent)
                                                  Labor                   Nonlabor                      Labor                Nonlabor                   Labor                  Nonlabor                   Labor           Nonlabor

                                               $3,420.01                 $2,096.13                 $3,351.88                $2,054.37                 $3,397.30               $2,082.21                 $3,329.16         $2,040.46



                                            b. Middle of the page—                                              PUERTO RICO, LABOR/NONLABOR                                       SHARE BECAUSE WAGE INDEX IS
                                            (1) Table 1C titled ‘‘ADJUSTED                                      (NATIONAL: 62 PERCENT LABOR                                       LESS THAN OR EQUAL TO 1);—FY
                                           OPERATING STANDARDIZED                                               SHARE/38 PERCENT NONLABOR                                         2017’’ is corrected to read as follows:
                                           AMOUNTS FOR HOSPITALS IN

                                            TABLE 1C—ADJUSTED OPERATING STANDARDIZED AMOUNTS FOR HOSPITALS IN PUERTO RICO, LABOR/NONLABOR (NA-
                                               TIONAL: 62 PERCENT LABOR SHARE/38 PERCENT NONLABOR SHARE BECAUSE WAGE INDEX IS LESS THAN OR
                                               EQUAL TO 1)—FY 2017
                                                                                                                        Rates if wage index is greater than 1                                            Rates if wage index is less
                                                                                                                                                                                                             than or equal to 1
                                                      Standardized amount
                                                                                                                    Labor                                            Nonlabor                              Labor           Nonlabor

                                           National 1 ........................................   Not Applicable ................................    Not Applicable ................................      $3,420.01        $2,096.13
                                              1 For   FY 2017, there are no CBSAs in Puerto Rico with a national wage index greater than 1.


                                             (2) Table 1D titled ‘‘CAPITAL                                      C. Corrections of Errors in the                                      (2) Line 9, the figure ‘‘1,135’’ is
                                           STANDARD FEDERAL PAYMENT                                             Appendices                                                        corrected to read ‘‘1,146’’.
                                           RATE—FY 2017’’ is corrected as                                         1. On page 57312, bottom of the page,                              b. Third column, first full paragraph,
                                           follows:                                                             third column, first partial paragraph,                            line 13—
                                                                                                                  a. Line 8, the figure ‘‘$987’’ is                                  (1) The figure ‘‘1,372’’ is corrected to
                                               TABLE 1D—CAPITAL STANDARD                                        corrected to read ‘‘$990’’.                                       read ‘‘1,369’’.
                                             FEDERAL PAYMENT RATE—FY 2017                                         b. Line 10, the figure ‘‘$66’’ is
                                                                                                                                                                                     (2) The figure ‘‘1,150’’ is corrected to
                                                                                                                corrected to read ‘‘$72’’.
                                                                                                                  2. On page 57315, upper three-fourths                           read ‘‘1,153’’.
                                                                                                 Rate
                                                                                                                of the page—                                                         3. On pages 57315 through 57317, the
                                           National .................................        $446.79              a. Second column, third full                                    table titled ‘‘TABLE I—IMPACT
                                                                                                                paragraph,                                                        ANALYSIS OF CHANGES TO THE IPPS
                                                                                                                  (1) Line 7, the figure ‘‘1,380’’ is                             FOR OPERATING COSTS FOR FY
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                                                                                                                corrected to read ‘‘1,369’’.                                      2017’’ is corrected to read as follows:




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                                           68956                  Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                                                      TABLE I—IMPACT ANALYSIS OF CHANGES TO THE IPPS FOR OPERATING COSTS FOR FY 2017
                                                                                                                                                                                                Rural and
                                                                                                                                      FY 2017              FY 2017                            imputed floor
                                                                                                                                    weights and           Wage data                                              Application of
                                                                                                                 Hospital rate                                                                     with
                                                                                                                                   DRG changes            under new           FY 2017                             the frontier
                                                                                                 Number          update and                                                                   application of
                                                                                                                                        with              CBSA des-           MGCRB                               wage index       All FY 2017
                                                                                                   of           documentation                                                                 national rural
                                                                                                                                   application of       ignations with      reclassifica-                             and           changes
                                                                                                hospitals 1       and coding                                                                       and
                                                                                                                                    recalibration       application of          tions                            out-migration
                                                                                                                  adjustment                                                                  imputed floor
                                                                                                                                       budget            wage budget                                              adjustment
                                                                                                                                                                                                 budget
                                                                                                                                      neutrality           neutrality                           neutrality

                                                                                                                     (1) 2             (2) 3                 (3) 4              (4) 5             (5) 6              (6) 7            (7) 8

                                           All Hospitals ..................................           3,330                  1.0                0.0                   0.0               0.0                0.0               0.1              0.9
                                           By Geographic Location:
                                           Urban hospitals .............................              2,515                  0.9                0.0                   0.0          ¥0.1                    0.0               0.1              0.9
                                                Large urban areas .................                   1,369                  0.9                0.1                   0.0          ¥0.3                   ¥0.1               0.0              0.9
                                                Other urban areas ..................                  1,146                  1.0                0.0                   0.0           0.1                    0.2               0.2              1.0
                                           Rural hospitals ..............................               815                  1.6               ¥0.4                   0.1           1.3                   ¥0.2               0.1              1.2
                                           Bed Size (Urban):
                                                0–99 beds ..............................                659                  0.9               ¥0.2                   0.2          ¥0.5                    0.1               0.2              0.9
                                                100–199 beds ........................                   767                  1.0               ¥0.1                   0.0           0.0                    0.3               0.2              0.7
                                                200–299 beds ........................                   446                  1.0               ¥0.1                  ¥0.1           0.1                    0.0               0.1              0.8
                                                300–499 beds ........................                   431                  1.0                0.1                   0.0          ¥0.2                    0.1               0.2              0.9
                                                500 or more beds ..................                     212                  0.9                0.2                   0.0          ¥0.2                   ¥0.2               0.0              1.1
                                           Bed Size (Rural):
                                                0–49 beds ..............................                317                  1.5               ¥0.5                   0.1               0.2               ¥0.2               0.3              1.0
                                                50–99 beds ............................                 292                  1.8               ¥0.6                   0.1               0.8               ¥0.2               0.1              1.2
                                                100–149 beds ........................                   120                  1.6               ¥0.4                   0.0               1.5               ¥0.2               0.2              1.0
                                                150–199 beds ........................                    46                  1.7               ¥0.2                   0.2               1.7               ¥0.3               0.0              1.3
                                                200 or more beds ..................                      40                  1.6               ¥0.1                   0.2               2.5               ¥0.3               0.0              1.5
                                           Urban by Region:
                                                New England ..........................                  116                  0.8                0.0                  ¥0.5           1.1                    0.9               0.1         ¥0.4
                                                Middle Atlantic ........................                315                  0.9                0.1                  ¥0.1           0.8                   ¥0.2               0.1          0.9
                                                South Atlantic .........................                407                  1.0                0.0                  ¥0.2          ¥0.5                   ¥0.3               0.1          0.9
                                                East North Central .................                    390                  0.9                0.0                  ¥0.1          ¥0.2                   ¥0.4               0.0          1.0
                                                East South Central .................                    147                  1.0                0.0                  ¥0.1          ¥0.4                   ¥0.3               0.0          1.2
                                                West North Central ................                     163                  1.1                0.1                  ¥0.1          ¥0.8                   ¥0.4               0.7          1.0
                                                West South Central ................                     385                  0.9                0.0                   0.2          ¥0.5                   ¥0.4               0.0          1.2
                                                Mountain ................................               163                  1.1                0.0                   0.1          ¥0.3                    1.2               0.2          2.2
                                                Pacific .....................................           378                  0.9                0.0                   0.4          ¥0.4                    1.0               0.1          0.5
                                                Puerto Rico ............................                 51                  0.9                0.1                  ¥0.5          ¥1.0                    0.1               0.1          0.3
                                           Rural by Region:
                                                New England ..........................                   21                  1.3               ¥0.2                   0.3           1.4                   ¥0.3               0.2              1.6
                                                Middle Atlantic ........................                 54                  1.7               ¥0.4                   0.1           0.8                   ¥0.2               0.1              1.6
                                                South Atlantic .........................                128                  1.7               ¥0.5                  ¥0.1           2.3                   ¥0.3               0.1              1.0
                                                East North Central .................                    115                  1.7               ¥0.4                   0.0           1.0                   ¥0.2               0.1              1.2
                                                East South Central .................                    155                  1.1               ¥0.3                   0.4           2.2                   ¥0.4               0.1              1.0
                                                West North Central ................                      98                  2.2               ¥0.4                   0.0           0.2                   ¥0.1               0.3              1.5
                                                West South Central ................                     160                  1.5               ¥0.4                   0.4           1.3                   ¥0.3               0.1              1.2
                                                Mountain ................................                60                  1.7               ¥0.4                   0.1           0.2                   ¥0.1               0.2              1.3
                                                Pacific .....................................            24                  1.9               ¥0.4                  ¥0.3           1.3                   ¥0.1               0.0              1.3
                                           By Payment Classification:                                     0                  0.0                0.0                   0.0           0.0                    0.0               0.0              0.0
                                                Urban hospitals ......................                2,522                  0.9                0.0                   0.0          ¥0.1                    0.0               0.1              0.9
                                                Large urban areas .................                   1,369                  0.9                0.1                   0.0          ¥0.3                   ¥0.1               0.0              0.9
                                                Other urban areas ..................                  1,153                  1.0                0.0                   0.0           0.1                    0.2               0.2              1.0
                                                Rural areas ............................                808                  1.6               ¥0.4                   0.1           1.4                   ¥0.2               0.1              1.2
                                           Teaching Status:
                                                Nonteaching ...........................               2,266                  1.1               ¥0.2                   0.0           0.1                    0.2               0.1              0.8
                                                Fewer than 100 residents ......                         815                  1.0                0.0                   0.0          ¥0.1                    0.0               0.2              0.9
                                                100 or more residents ............                      249                  0.9                0.2                   0.0          ¥0.1                   ¥0.2               0.0              1.1
                                           Urban DSH:
                                                Non-DSH ................................                589                  0.9               ¥0.1                  ¥0.2           0.2                    0.0               0.2              0.8
                                                100 or more beds ..................                   1,642                  0.9                0.1                   0.0          ¥0.1                    0.0               0.1              0.9
                                                Less than 100 beds ...............                      363                  1.0               ¥0.3                   0.0          ¥0.5                    0.1               0.1              0.7
                                           Rural DSH:
                                                SCH ........................................            240                  2.0               ¥0.6                   0.1               0.1               ¥0.1               0.0              1.4
                                                RRC .......................................             325                  1.7               ¥0.3                   0.1               1.8               ¥0.2               0.0              1.3
                                                100 or more beds ..................                      29                  0.9               ¥0.4                   0.1               2.9               ¥0.4               0.1              0.5
                                                Less than 100 beds ...............                      142                  0.8               ¥0.4                   0.2               1.3               ¥0.4               0.7              0.2
                                           Urban teaching and DSH:
                                                Both teaching and DSH .........                         898                  0.9                0.1                   0.0          ¥0.2                   ¥0.1               0.1              1.0
                                                Teaching and no DSH ...........                         109                  0.9                0.0                  ¥0.1           1.1                    0.0               0.0              0.7
                                                No teaching and DSH ............                      1,107                  1.0               ¥0.1                   0.1          ¥0.1                    0.3               0.1              0.8
                                                No teaching and no DSH .......                          408                  0.9               ¥0.1                  ¥0.2          ¥0.4                    0.0               0.2              0.9
                                           Special Hospital Types:
                                                RRC .......................................             189                  0.8               ¥0.1                   0.1               1.9                0.0               0.5              1.2
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                                                SCH ........................................            324                  2.1               ¥0.3                  ¥0.1               0.0                0.0               0.0              1.7
                                                MDH .......................................             148                  1.7               ¥0.6                   0.0               0.6               ¥0.1               0.1              1.3
                                                SCH and RRC .......................                     126                  2.2               ¥0.3                   0.1               0.4               ¥0.1               0.0              1.8
                                                MDH and RRC .......................                      12                  2.1               ¥0.6                  ¥0.1               1.3               ¥0.2               0.0              2.2
                                           Type of Ownership:
                                                Voluntary ................................            1,927                  1.0                0.0                   0.0           0.0                    0.0               0.1              0.9
                                                Proprietary ..............................              881                  1.0                0.0                   0.1           0.0                    0.0               0.1              0.9
                                                Government ...........................                  522                  1.0                0.0                  ¥0.1          ¥0.2                    0.0               0.1              0.9



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                                                                  Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                                           68957

                                                         TABLE I—IMPACT ANALYSIS OF CHANGES TO THE IPPS FOR OPERATING COSTS FOR FY 2017—Continued
                                                                                                                                                                                                Rural and
                                                                                                                                      FY 2017              FY 2017                            imputed floor
                                                                                                                                    weights and           Wage data                                              Application of
                                                                                                                 Hospital rate                                                                     with
                                                                                                                                   DRG changes            under new           FY 2017                             the frontier
                                                                                                 Number          update and             with              CBSA des-           MGCRB           application of      wage index       All FY 2017
                                                                                                   of           documentation      application of       ignations with      reclassifica-     national rural          and           changes
                                                                                                hospitals 1       and coding        recalibration       application of          tions              and           out-migration
                                                                                                                  adjustment                                                                  imputed floor
                                                                                                                                       budget            wage budget                                              adjustment
                                                                                                                                                                                                 budget
                                                                                                                                      neutrality           neutrality                           neutrality

                                                                                                                     (1) 2             (2) 3                 (3) 4              (4) 5             (5) 6              (6) 7            (7) 8

                                           Medicare Utilization as a Percent
                                             of Inpatient Days:
                                                0–25 .......................................            523                  0.8                0.1                   0.1          ¥0.3                    0.2               0.0              1.1
                                                25–50 .....................................           2,122                  1.0                0.0                   0.0           0.0                   ¥0.1               0.1              0.9
                                                50–65 .....................................             545                  1.2               ¥0.2                  ¥0.1           0.6                    0.0               0.1              0.9
                                                Over 65 ..................................               89                  1.2               ¥0.3                   0.3          ¥0.4                    0.2               0.2              1.0
                                           FY 2017 Reclassifications by the
                                             Medicare Geographic Classifica-
                                             tion Review Board:
                                                All Reclassified Hospitals .......                      791                  1.1               ¥0.1                   0.0           2.3                   ¥0.2               0.0              0.9
                                                Non¥Reclassified Hospitals ..                         2,539                  1.0                0.0                   0.0          ¥0.8                    0.1               0.1              0.9
                                                Urban Hospitals Reclassified                            532                  1.0                0.0                  ¥0.1           2.3                   ¥0.1               0.0              0.9
                                                Urban Nonreclassified Hos-
                                                   pitals ...................................         1,936                  0.9                0.1                   0.0          ¥0.9                    0.1               0.1              0.9
                                                Rural Hospitals Reclassified
                                                   Full Year .............................              277                  1.7               ¥0.3                   0.1               2.2               ¥0.2               0.0              1.3
                                                Rural Nonreclassified Hos-
                                                   pitals Full Year ...................                 489                  1.6               ¥0.4                   0.2          ¥0.2                   ¥0.2               0.3              1.1
                                                All Section 401 Reclassified
                                                   Hospitals: ............................               72                  1.7               ¥0.2                   0.0               0.3               ¥0.1               0.9              1.5
                                                Other Reclassified Hospitals
                                                   (Section 1886(d)(8)(B)) ......                        48                  1.2               ¥0.4                   0.1               3.1               ¥0.4               0.0              0.8
                                              1 Because   data necessary to classify some hospitals by category were missing, the total number of hospitals in each category may not equal the national total. Dis-
                                           charge data are from FY 2015, and hospital cost report data are from reporting periods beginning in FY 2012 and FY 2013.
                                              2 This column displays the payment impact of the hospital rate update and other adjustments including the 1.65 percent adjustment to the national standardized
                                           amount and hospital-specific rate (the estimated 2.7 percent market basket update reduced by 0.3 percentage points for the multifactor productivity adjustment and
                                           the 0.75 percentage point reduction under the Affordable Care Act), the ¥1.5 percent documentation and coding adjustment to the national standardized amount and
                                           the adjustment of (1/0.998) to permanently remove the ¥0.2 percent reduction, and the 1.006 temporary adjustment to address the effects of the 0.2 percent reduc-
                                           tion in effect for FYs 2014 through 2016 related to the 2-midnight policy.
                                              3 This column displays the payment impact of the changes to the Version 34 GROUPER, the changes to the relative weights and the recalibration of the MS DRG
                                           weights based on FY 2015 MedPAR data in accordance with section 1886(d)(4)(C)(iii) of the Act. This column displays the application of the recalibration budget neu-
                                           trality factor of 0.999078 in accordance with section 1886(d)(4)(C)(iii) of the Act.
                                              4 This column displays the payment impact of the update to wage index data using FY 2013 cost report data and the OMB labor market area delineations based on
                                           2010 Decennial Census data. This column displays the payment impact of the application of the wage budget neutrality factor, which is calculated separately from the
                                           recalibration budget neutrality factor, and is calculated in accordance with section 1886(d)(3)(E)(i) of the Act. The wage budget neutrality factor is 1.000210.
                                              5 Shown here are the effects of geographic reclassifications by the Medicare Geographic Classification Review Board (MGCRB) along with the effects of the contin-
                                           ued implementation of the new OMB labor market area delineations on these reclassifications. The effects demonstrate the FY 2017 payment impact of going from no
                                           reclassifications to the reclassifications scheduled to be in effect for FY 2017. Reclassification for prior years has no bearing on the payment impacts shown here.
                                           This column reflects the geographic budget neutrality factor of 0.988136.
                                              6 This column displays the effects of the rural and imputed floor based on the continued implementation of the new OMB labor market area delineations. The Af-
                                           fordable Care Act requires the rural floor budget neutrality adjustment to be 100 percent national level adjustment. The rural floor budget neutrality factor (which in-
                                           cludes the imputed floor) applied to the wage index is 0.991987. This column also shows the effect of the 3-year transition for hospitals that were located in urban
                                           counties that became rural under the new OMB delineations or hospitals deemed urban where the urban area became rural under the new OMB delineations, with a
                                           budget neutrality factor of 0.999997.
                                              7 This column shows the combined impact of the policy required under section 10324 of the Affordable Care Act that hospitals located in frontier States have a
                                           wage index no less than 1.0 and of section 1886(d)(13) of the Act, as added by section 505 of Public Law 108–173, which provides for an increase in a hospital’s
                                           wage index if a threshold percentage of residents of the county where the hospital is located commute to work at hospitals in counties with higher wage indexes.
                                           These are not budget neutral policies.
                                              8 This column shows the estimated change in payments from FY 2016 to FY 2017.




                                             4. On page 57319,                                                       (a) Line 1, the figure ‘‘397’’ is                                     (1) First full paragraph,
                                             a. First column, second full                                          corrected to read ‘‘436’’.                                              (a) Line 7, the figure ‘‘$10’’ is
                                           paragraph,                                                                (b) Line 5—                                                        corrected to read ‘‘$6.4’’.
                                             (1) Line 6, the figure ‘‘0.988224’’ is                                  (1) The figure ‘‘0.9930’’ is corrected to                             (b) Line 18, the figure ‘‘$17’’ is
                                           corrected to read ‘‘0.988136’’.                                         read ‘‘0.991987’’.                                                   corrected to read ‘‘$18’’.
                                             (2) Line 13, the figure ‘‘1.4’’ is                                      (2) The figure ‘‘0.7’’ is corrected to
                                           corrected to read ‘‘1.3’’.                                              read ‘‘0.8’’.                                                           (2) Second full paragraph, line 28, the
                                             b. Second column—                                                       (c) Line 23, the figure ‘‘1.0’’ is                                 figure ‘‘0.999994’’ is corrected to read
                                             (1) First full paragraph—                                             corrected to read ‘‘0.9’’.                                           ‘‘0.999997’’.
                                             (a) Line 8, the figure ‘‘0.9930’’ is                                    (d) Line 31, the figure ‘‘$24’’ is                                    5. On page 57320, the table titled ‘‘FY
                                           corrected to read ‘‘0.991987’’.                                         corrected to read ‘‘$22’’.                                           2017 IPPS Estimated Payments Due to
                                             (b) Line 9, the figure ‘‘0.7’’ is                                       (e) Line 33, the figure ‘‘0.7’’ is                                 Rural Floor and Imputed Floor with
                                           corrected to read ‘‘0.8’’.                                              corrected to read ‘‘0.6’’.                                           National Budget Neutrality’’ is corrected
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                                             (2) Third full paragraph—                                               c. Third column—                                                   to read as follows:




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                                           68958                 Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                                  FY 2017 IPPS ESTIMATED PAYMENTS DUE TO RURAL AND IMPUTED FLOOR WITH NATIONAL BUDGET NEUTRALITY
                                                                                                                                                                                            Percent change in
                                                                                                                                                                          Number of          payments due to
                                                                                                                                                                      hospitals that will
                                                                                                                                                 Number of                                  application of rural     Difference
                                                                                      State                                                                           receive the rural
                                                                                                                                                  hospitals                                 floor and imputed      (in $ millions)
                                                                                                                                                                       floor or imputed      floor with budget
                                                                                                                                                                             floor               neutrality

                                                                                                                                                     (1)                     (2)                     (3)                (4)

                                           Alabama ...................................................................................                         83                      6                   ¥0.3                 ¥6
                                           Alaska ......................................................................................                        6                      4                    2.1                  4
                                           Arizona .....................................................................................                       57                     46                    3.5                 63
                                           Arkansas ..................................................................................                         44                      0                   ¥0.4                 ¥4
                                           California ..................................................................................                      301                    186                    1.3                131
                                           Colorado ..................................................................................                         48                      3                    0.2                  3
                                           Connecticut ..............................................................................                          31                      8                    0.2                  4
                                           Delaware ..................................................................................                          6                      2                      0                  0
                                           Washington, DC .......................................................................                               7                      0                   ¥0.4                 ¥1
                                           Florida ......................................................................................                     171                     16                   ¥0.3                 ¥2
                                           Georgia ....................................................................................                       105                      0                   ¥0.4                ¥18
                                           Hawaii ......................................................................................                       12                      0                   ¥0.3                ¥10
                                           Idaho ........................................................................................                      14                      0                   ¥0.3                 ¥1
                                           Illinois .......................................................................................                   126                      3                   ¥0.4                 ¥1
                                           Indiana .....................................................................................                       89                      0                   ¥0.4                ¥19
                                           Iowa .........................................................................................                      35                      0                   ¥0.4                ¥11
                                           Kansas .....................................................................................                        53                      0                   ¥0.3                 ¥4
                                           Kentucky ..................................................................................                         65                      0                   ¥0.4                 ¥3
                                           Louisiana ..................................................................................                        95                      2                   ¥0.4                 ¥6
                                           Maine .......................................................................................                       18                      0                   ¥0.4                 ¥5
                                           Massachusetts .........................................................................                             58                     15                    0.6                 ¥2
                                           Michigan ...................................................................................                        95                      0                   ¥0.4                 22
                                           Minnesota ................................................................................                          49                      0                   ¥0.3                ¥18
                                           Mississippi ................................................................................                        62                      0                   ¥0.4                 ¥6
                                           Missouri ....................................................................................                       74                      2                   ¥0.3                 ¥4
                                           Montana ...................................................................................                         12                      4                    0.3                 ¥8
                                           Nebraska ..................................................................................                         26                      0                   ¥0.3                  1
                                           Nevada .....................................................................................                        24                      3                   ¥0.2                 ¥2
                                           New Hampshire .......................................................................                               13                      9                    2.2                 ¥2
                                           New Jersey ..............................................................................                           64                     18                    0.2                 11
                                           New Mexico .............................................................................                            25                      0                   ¥0.3                  6
                                           New York .................................................................................                         154                     21                   ¥0.3                 ¥1
                                           North Carolina ..........................................................................                           84                      1                   ¥0.4                ¥20
                                           North Dakota ............................................................................                            6                      1                   ¥0.3                ¥12
                                           Ohio .........................................................................................                     130                     10                   ¥0.4                 ¥1
                                           Oklahoma .................................................................................                          86                      2                   ¥0.3                ¥13
                                           Oregon .....................................................................................                        34                      2                   ¥0.4                 ¥4
                                           Pennsylvania ............................................................................                          151                      5                   ¥0.4                 ¥4
                                           Puerto Rico ..............................................................................                          51                     12                    0.1                ¥20
                                           Rhode Island ............................................................................                           11                     10                    4.7                  0
                                           South Carolina .........................................................................                            57                      5                   ¥0.1                 18
                                           South Dakota ...........................................................................                            18                      0                   ¥0.2                 ¥2
                                           Tennessee ...............................................................................                           92                     20                   ¥0.3                 ¥1
                                           Texas .......................................................................................                      320                      3                   ¥0.4                 ¥7
                                           Utah .........................................................................................                      33                      1                   ¥0.3                ¥26
                                           Vermont ...................................................................................                          6                      0                   ¥0.2                 ¥2
                                           Virginia .....................................................................................                      76                      1                   ¥0.3                 ¥1
                                           Washington ..............................................................................                           49                      6                   ¥0.1                 ¥8
                                           West Virginia ............................................................................                          29                      3                   ¥0.2                 ¥1
                                           Wisconsin .................................................................................                         65                      6                   ¥0.3                 ¥5
                                           Wyoming ..................................................................................                          10                      0                   ¥0.1                  0



                                              6. On page 57321, second column,                                            b Line 7, the figure ‘‘1.0’’ is corrected                 ACUTE CARE HOSPITAL OPERATING
                                           first partial paragraph —                                                    to read ‘‘0.9’’.                                            PROSPECTIVE PAYMENT SYSTEM
                                              a Line 1, the figure ‘‘277’’ is corrected                                   7. On pages 57321 through 57323, the                      [PAYMENTS PER DISCHARGE]’’ is
                                           to read ‘‘278’’.                                                             table titled ‘‘TABLE II—IMPACT                              corrected to read as follows:
                                                                                                                        ANALYSIS OF CHANGES FOR FY 2017
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                                                                 Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                                   68959

                                               TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2017 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT
                                                                                             SYSTEM
                                                                                                                                      [Payments per discharge]

                                                                                                                                                                                      Estimated          Estimated
                                                                                                                                                                                       average          average FY
                                                                                                                                                                  Number of                                               FY 2017
                                                                                                                                                                                       FY 2016              2017
                                                                                                                                                                   hospitals                                              changes
                                                                                                                                                                                     payment per        payment per
                                                                                                                                                                                      discharge          discharge

                                                                                                                                                                       (1)               (2)                (3)             (4)

                                           All Hospitals .....................................................................................................               3,330        $11,542            $11,649                0.9
                                           By Geographic Location:
                                                Urban hospitals .........................................................................................                    2,515         11,890             11,997                0.9
                                                Large urban areas ....................................................................................                       1,369         12,690             12,799                0.9
                                                Other urban areas ....................................................................................                       1,146         10,946             11,051                1.0
                                                Rural hospitals ..........................................................................................                     815          8,602              8,707                1.2
                                           Bed Size (Urban):
                                                0–99 beds .................................................................................................                   659           9,392              9,478                0.9
                                                100–199 beds ...........................................................................................                      767          10,050             10,117                0.7
                                                200–299 beds ...........................................................................................                      446          10,757             10,840                0.8
                                                300–499 beds ...........................................................................................                      431          12,092             12,202                0.9
                                                500 or more beds .....................................................................................                        212          14,613             14,772                1.1
                                           Bed Size (Rural):
                                                0–49 beds .................................................................................................                   317           7,208              7,279                1.0
                                                50–99 beds ...............................................................................................                    292           8,192              8,292                1.2
                                                100–149 beds ...........................................................................................                      120           8,434              8,519                1.0
                                                150–199 beds ...........................................................................................                       46           9,243              9,367                1.3
                                                200 or more beds .....................................................................................                         40          10,171             10,320                1.5
                                           Urban by Region:
                                                New England ............................................................................................                      116          12,957             12,901              ¥0.4
                                                Middle Atlantic ..........................................................................................                    315          13,471             13,593               0.9
                                                South Atlantic ...........................................................................................                    407          10,498             10,595               0.9
                                                East North Central ....................................................................................                       390          11,190             11,303               1.0
                                                East South Central ...................................................................................                        147          10,042             10,160               1.2
                                                West North Central ...................................................................................                        163          11,578             11,692               1.0
                                                West South Central ..................................................................................                         385          10,693             10,820               1.2
                                                Mountain ...................................................................................................                  163          12,279             12,549               2.2
                                                Pacific .......................................................................................................               378          15,372             15,452               0.5
                                                Puerto Rico ...............................................................................................                    51           8,491              8,513               0.3
                                           Rural by Region:
                                                New England ............................................................................................                       21          11,818             12,009                1.6
                                                Middle Atlantic ..........................................................................................                     54           8,655              8,791                1.6
                                                South Atlantic ...........................................................................................                    128           8,043              8,122                1.0
                                                East North Central ....................................................................................                       115           8,918              9,023                1.2
                                                East South Central ...................................................................................                        155           7,639              7,716                1.0
                                                West North Central ...................................................................................                         98           9,420              9,560                1.5
                                                West South Central ..................................................................................                         160           7,243              7,328                1.2
                                                Mountain ...................................................................................................                   60          10,100             10,228                1.3
                                                Pacific .......................................................................................................                24          12,045             12,197                1.3
                                           By Payment Classification:
                                                Urban hospitals .........................................................................................                    2,522         11,886             11,993                0.9
                                                Large urban areas ....................................................................................                       1,369         12,690             12,799                0.9
                                                Other urban areas ....................................................................................                       1,153         10,940             11,046                1.0
                                                Rural areas ...............................................................................................                    808          8,602              8,706                1.2
                                           Teaching Status:
                                                Nonteaching ..............................................................................................                   2,266          9,600              9,680                0.8
                                                Fewer than 100 residents .........................................................................                             815         11,133             11,231                0.9
                                                100 or more residents ..............................................................................                           249         16,764             16,949                1.1
                                           Urban DSH:
                                                Non-DSH ..................................................................................................                     589         10,055             10,140                0.8
                                                100 or more beds .....................................................................................                       1,642         12,247             12,359                0.9
                                                Less than 100 beds ..................................................................................                          363          8,853              8,914                0.7
                                           Rural DSH:
                                                SCH ..........................................................................................................                240              8,584              8,702             1.4
                                                RRC ..........................................................................................................                325              9,006              9,123             1.3
                                                100 or more beds .....................................................................................                         29              7,018              7,054             0.5
                                                Less than 100 beds ..................................................................................                         142              6,823              6,838             0.2
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                                           Urban teaching and DSH:
                                                Both teaching and DSH ............................................................................                             898         13,344             13,474                1.0
                                                Teaching and no DSH ..............................................................................                             109         11,361             11,442                0.7
                                                No teaching and DSH ..............................................................................                           1,107         10,047             10,124                0.8
                                                No teaching and no DSH .........................................................................                               408          9,455              9,539                0.9
                                           Special Hospital Types:
                                                RRC ..........................................................................................................                189              9,709              9,824             1.2



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                                           68960                 Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                               TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2017 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT
                                                                                        SYSTEM—Continued
                                                                                                                                         [Payments per discharge]

                                                                                                                                                                                       Estimated            Estimated
                                                                                                                                                                                        average            average FY
                                                                                                                                                                   Number of                                                FY 2017
                                                                                                                                                                                        FY 2016                2017
                                                                                                                                                                    hospitals                                               changes
                                                                                                                                                                                      payment per          payment per
                                                                                                                                                                                       discharge            discharge

                                                                                                                                                                        (1)                 (2)                (3)             (4)

                                                SCH ..........................................................................................................                 324            10,344              10,516              1.7
                                                MDH ..........................................................................................................                 148             7,321               7,415              1.3
                                                SCH and RRC ..........................................................................................                         126            10,767              10,957              1.8
                                                MDH and RRC ..........................................................................................                          12             8,822               9,019              2.2
                                           Type of Ownership:
                                                Voluntary ...................................................................................................                 1,927           11,719              11,830              0.9
                                                Proprietary ................................................................................................                    881           10,130              10,218              0.9
                                                Government ..............................................................................................                       522           12,485              12,596              0.9
                                           Medicare Utilization as a Percent of Inpatient Days:
                                                0–25 ..........................................................................................................                 523           14,996              15,160              1.1
                                                25–50 ........................................................................................................                2,122           11,460              11,562              0.9
                                                50–65 ........................................................................................................                  545            9,343               9,431              0.9
                                                Over 65 .....................................................................................................                    89            6,948               7,019              1.0
                                           FY 2017 Reclassifications by the Medicare Geographic Classification Re-
                                             view Board:
                                                All Reclassified Hospitals .........................................................................                            791           11,399              11,507              0.9
                                                Non-Reclassified Hospitals .......................................................................                            2,539           11,595              11,701              0.9
                                                Urban Hospitals Reclassified ....................................................................                               532           12,008              12,115              0.9
                                                Urban Nonreclassified Hospitals ..............................................................                                1,936           11,849              11,955              0.9
                                                Rural Hospitals Reclassified Full Year .....................................................                                    277            8,984               9,101              1.3
                                                Rural Nonreclassified Hospitals Full Year ................................................                                      489            8,173               8,266              1.1
                                                All Section 401 Reclassified Hospitals .....................................................                                     72           11,307              11,474              1.5
                                                Other Reclassified Hospitals (Section 1886(d)(8)(B)) ..............................                                              48            7,889               7,954              0.8



                                              7. On page 57324, top of the page,                                         8. On pages 57324 and 57325, the                               DSH $ (In Millions) From FY 2016 to FY
                                           third column, last paragraph, line 1, the                                   table titled ‘‘Modeled Disproportionate                          2017’’ is corrected to read as follows:
                                           figure ‘‘2,426’’ is corrected to read                                       Share Hospital Payments for Estimated
                                           ‘‘2,419’’.                                                                  FY 2017 DSHs by Hospital Type: Model

                                            MODELED DISPROPORTIONATE SHARE HOSPITAL PAYMENTS FOR ESTIMATED FY 2017 DSHS BY HOSPITAL TYPE: MODEL
                                                                        DSH $ (IN MILLIONS) FROM FY 2016 TO FY 2017
                                                                                                                                                                      FY 2016             FY 2017              Dollar
                                                                                                                                            Number of                   final               final           difference:      Percent
                                                                                                                                              DSHs                rule estimated      rule estimated        FY 2017–        change **
                                                                                                                                            (FY 2017)                 DSH $ *             DSH $ *            FY 2016
                                                                                                                                                                    (in millions)       (in millions)      (in millions)

                                                                                                                                                 (1)                    (2)                 (3)                (4)             (5)

                                           Total .....................................................................................                 2,419              $9,767              $9,551             ¥$216               ¥2.2
                                           By Geographic Location:
                                               Urban Hospitals ............................................................                            1,921                  9,294               9,106              ¥188            ¥2.0
                                                      Large Urban Areas ................................................                               1,045                  5,885               5,765              ¥120            ¥2.0
                                                      Other Urban Areas ................................................                                 876                  3,408               3,341               ¥68            ¥2.0
                                               Rural Hospitals .............................................................                             498                    473                 445               ¥28            ¥5.9
                                           Bed Size (Urban):
                                               0 to 99 Beds .................................................................                            336                    189                 185                ¥4            ¥2.2
                                               100 to 249 Beds ...........................................................                               837                  2,211               2,154               ¥57            ¥2.6
                                               250+ Beds ....................................................................                            748                  6,894               6,767              ¥127            ¥1.8
                                           Bed Size (Rural):
                                               0 to 99 Beds .................................................................                            368                   206                 190               ¥16             ¥7.8
                                               100 to 249 Beds ...........................................................                               116                   211                 199               ¥12             ¥5.5
                                               250+ Beds ....................................................................                             14                    56                  56                 0             ¥0.2
                                           Urban by Region:
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                                               East North Central ........................................................                               322                  1,273               1,252              ¥22             ¥1.7
                                               East South Central .......................................................                                129                    574                 566               ¥8             ¥1.4
                                               Middle Atlantic ..............................................................                            232                  1,614               1,570              ¥44             ¥2.7
                                               Mountain .......................................................................                          125                    448                 448                0             ¥0.1
                                               New England ................................................................                               90                    394                 385               ¥9             ¥2.4
                                               Pacific ...........................................................................                       312                  1,459               1,448              ¥10             ¥0.7
                                               Puerto Rico ...................................................................                            41                    104                 116               12             11.3



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                                                                Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                             68961

                                            MODELED DISPROPORTIONATE SHARE HOSPITAL PAYMENTS FOR ESTIMATED FY 2017 DSHS BY HOSPITAL TYPE: MODEL
                                                                   DSH $ (IN MILLIONS) FROM FY 2016 TO FY 2017—Continued
                                                                                                                                                           FY 2016              FY 2017              Dollar
                                                                                                                                      Number of              final                final           difference:      Percent
                                                                                                                                        DSHs           rule estimated       rule estimated        FY 2017–        change **
                                                                                                                                      (FY 2017)            DSH $ *              DSH $ *            FY 2016
                                                                                                                                                         (in millions)        (in millions)      (in millions)

                                                                                                                                         (1)                  (2)                 (3)                (4)             (5)

                                               South Atlantic ................................................................                   314                1,777               1,721              ¥56             ¥3.2
                                               West North Central .......................................................                        104                  451                 439              ¥11             ¥2.5
                                               West South Central ......................................................                         252                1,200               1,161              ¥39             ¥3.2
                                           Rural by Region:
                                               East North Central ........................................................                        64                  49                  44                ¥4          ¥8.3
                                               East South Central .......................................................                        141                 149                 141                ¥8          ¥5.3
                                               Middle Atlantic ..............................................................                     28                  34                  33                ¥1          ¥2.4
                                               Mountain .......................................................................                   21                  16                  15                 0          ¥0.2
                                               New England ................................................................                       11                  15                  16                 1           7.2
                                               Pacific ...........................................................................                 7                   9                   7                ¥3         ¥27.4
                                               South Atlantic ................................................................                    86                  98                  92                ¥6          ¥6.4
                                               West North Central .......................................................                         31                  20                  19                ¥1          ¥6.3
                                               West South Central ......................................................                         109                  83                  78                ¥6          ¥7.0
                                           By Payment Classification:
                                               Urban Hospitals ............................................................                    1,886                9,243               9,055              ¥188            ¥2.0
                                                    Large Urban Areas ................................................                         1,043                5,884               5,764              ¥120            ¥2.0
                                                    Other Urban Areas ................................................                           843                3,359               3,292               ¥68            ¥2.0
                                               Rural Hospitals .............................................................                     533                  523                 496               ¥28            ¥5.3
                                           Teaching Status:
                                               Nonteaching ..................................................................                  1,544                3,117               3,053              ¥64             ¥2.1
                                               Fewer than 100 residents .............................................                            637                3,213               3,132              ¥81             ¥2.5
                                               100 or more residents ..................................................                          238                3,437               3,366              ¥71             ¥2.1
                                           Type of Ownership:
                                               Voluntary .......................................................................               1,405                6,044               5,913              ¥131            ¥2.2
                                               Proprietary ....................................................................                  541                1,672               1,629               ¥43            ¥2.6
                                               Government ..................................................................                     471                2,023               1,983               ¥40            ¥2.0
                                               Unknown .......................................................................                     2                   27                  25                ¥2            ¥6.1
                                           Medicare Utilization Percent:
                                               Missing or Unknown .....................................................                            4                    1                   1                 0             0.9
                                               0 to 25 ...........................................................................               428                3,013               2,974               ¥39            ¥1.3
                                               25 to 50 .........................................................................              1,617                6,356               6,189              ¥166            ¥2.6
                                               50 to 65 .........................................................................                319                  385                 375               ¥10            ¥2.5
                                               Greater than 65 ............................................................                       51                   12                  11                ¥1            ¥8.2
                                             Source: Dobson | DaVanzo analysis of 2011–2013 Hospital Cost Reports.
                                             * Dollar DSH calculated by [0.25 * estimated section 1886(d)(5)(F) payments] + [0.75 * estimated section 1886(d)(5)(F) payments * Factor 2 *
                                           Factor 3]. When summed across all hospitals projected to receive DSH payments, DSH payments are estimated to be $9,767 million in FY 2016
                                           and $9,551 million in FY 2017.
                                             ** Percentage change is determined as the difference between Medicare DSH payments modeled for the FY 2017 IPPS/LTCH PPS final rule
                                           (column 3) and Medicare DSH payments modeled for the FY 2016 IPPS/LTCH PPS final rule (column 2) divided by Medicare DSH payments
                                           modeled for the FY 2016 final rule (column 2) times 100 percent.


                                              9. On page 57325, bottom of the page,                                   b. Last paragraph, line 6, the figure                      (2) Third paragraph, lines 8 and line
                                           third column, last paragraph, line 8, the                               ‘‘1.84’’ is corrected to read ‘‘1.83’’.                    9, the phrase ‘‘0.7 percent, while
                                           figure ‘‘6.4’’ is corrected to read ‘‘5.9’’.                               12. On page 57331, top half of the                      hospitals in rural areas, on average, are
                                              10. On page 57326, first column—                                     page—                                                      expected to experience a 0.8’’ is
                                              a. First partial paragraph—                                             a. First column—                                        corrected to read ‘‘0.7 percent, and
                                              (1) Line 7 the figure ‘‘5.2’’ is corrected                              (1) First partial paragraph—                            hospitals in rural areas, on average, are
                                           to read ‘‘5.5’’.                                                           (a) Line 1, the phrase ‘‘Less than half                 also expected to experience a 0.7’’.
                                              (2) Line 8, the figure ‘‘5.9’’ is                                    of the hospitals’’ is corrected to read
                                                                                                                                                                                 b. Second column—
                                           corrected to read ‘‘0.2’’.                                              ‘‘Most of the hospitals’’.
                                                                                                                      (b) Lines 4 through 6, the phrase ‘‘the                    (1) First partial paragraph, lines 2
                                              b. First full paragraph, line 12, the
                                                                                                                   effects of changes to the GAFs, while the                  through 6, the sentence ‘‘The primary
                                           figure ‘‘11.4’’ is corrected to read ‘‘11.3’’.
                                              c. Third full paragraph (last                                        remainder of these urban area hospitals                    factor contributing to the small
                                           paragraph)—                                                             would experience no change or a                            difference in the projected increase in
                                              (1) Line 12, the figure ‘‘11.4’’ is                                  decrease in’’ is corrected to read ‘‘the                   capital IPPS payments per case for
                                           corrected to read ‘‘11.3’’.                                             effects of changes to the GAFs, while                      urban hospitals as compared to rural
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                                              (2) Line 18, the figure ‘‘$9.5 million’’                             hospitals in one urban area are expected                   hospitals is the changes to the GAFs.’’
                                           is corrected to read ‘‘$9.4 million’’.                                  to experience a decrease in’’.                             is corrected by deleting the sentence.
                                              11. On page 57330, third column—                                        (c) Line 11, the phrase ‘‘except for two                   (2) First full paragraph—
                                              a. Fourth bulleted paragraph, line 4,                                rural areas where changes in’’ is                             (a) Lines 4 through 8, ‘‘range from a
                                           the figure ‘‘0.9991’’ is corrected to read                              corrected to read, ‘‘except for one rural                  4.2 percent increase for the Puerto Rico
                                           ‘‘0.9990’’.                                                             area where changes in’’.                                   urban hospitals, and a 1.4 percent


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                                           68962                Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations

                                           increase for the West South Central                                         (c) Line 23, the figure ‘‘1.6’’ is                          (b) Line 17, the figure ‘‘1.0’’ is
                                           urban region to a 0.7 percent increase                                   corrected to read ‘‘2.1’’.                                   corrected to read ‘‘0.9’’.
                                           for the Mountain urban region.’’ is                                         (d) Line 26, the figure ‘‘0.4’’ should                      (c) Line 20, the figure ‘‘0.2’’ is
                                           corrected to read ‘‘range from a 4.1                                     read ‘‘0.1’’.                                                corrected to read ‘‘0.3’’.
                                           percent increase for the Puerto Rico                                        c. Third column—
                                           urban hospitals, and a 2.1 percent                                                                                                      13. On pages 57331 and 57332, the
                                           increase for the Mountain urban region                                      (1) First full paragraph, line 9, the                     table titled ‘‘Table III.—Comparison of
                                           to a 0.7 percent increase for several                                    figure ‘‘0.7’’ is corrected to read ‘‘0.6’’.                 Total Payments Per Case [FY 2016
                                           other urban regions.’’.                                                     (2) Second full paragraph—                                Payments Compared To FY 2017
                                             (b) Line 13, the figure ‘‘4.2’’ is                                        (a) Line 13, the figure ‘‘1.0’’ is                        Payments]’’ is corrected to read as
                                           corrected to read ‘‘4.1’’.                                               corrected to read ‘‘0.9’’.                                   follows:

                                                                                                    TABLE III—COMPARISON OF TOTAL PAYMENTS PER CASE
                                                                                                               [FY 2016 payments compared to FY 2017 payments]

                                                                                                                                                                                Average FY          Average FY
                                                                                                                                                               Number of           2016                2017        Change
                                                                                                                                                                hospitals      payments/case       payments/case

                                           By Geographic Location:
                                               All hospitals ..............................................................................................            3,330                912              920            0.8
                                                    Large urban areas (populations over 1 million) ................................                                    1,369              1,011            1,019            0.7
                                                    Other urban areas (populations of 1 million of fewer) ......................                                       1,146                871              879            0.9
                                                    Rural areas ........................................................................................                 815                618              623            0.7
                                               Urban hospitals .........................................................................................               2,515                947              955            0.8
                                                    0–99 beds ..........................................................................................                 659                768              774            0.8
                                                    100–199 beds ....................................................................................                    767                824              829            0.6
                                                    200–299 beds ....................................................................................                    446                865              871            0.7
                                                    300–499 beds ....................................................................................                    431                958              967            0.9
                                                    500 or more beds ..............................................................................                      212              1,139            1,149            0.9
                                               Rural hospitals ..........................................................................................                815                618              623            0.7
                                                    0–49 beds ..........................................................................................                 317                520              524            0.7
                                                    50–99 beds ........................................................................................                  292                577              582            0.8
                                                    100–149 beds ....................................................................................                    120                610              614            0.6
                                                    150–199 beds ....................................................................................                     46                669              673            0.6
                                                    200 or more beds ..............................................................................                       40                738              745            0.9
                                           By Region:
                                               Urban by Region ......................................................................................                  2,515                947              955        0.8
                                                    New England .....................................................................................                    116              1,031            1,024       ¥0.6
                                                    Middle Atlantic ...................................................................................                  315              1,056            1,064        0.7
                                                    South Atlantic ....................................................................................                  407                840              847        0.8
                                                    East North Central .............................................................................                     390                908              915        0.8
                                                    East South Central ............................................................................                      147                793              804        1.3
                                                    West North Central ............................................................................                      163                923              930        0.7
                                                    West South Central ...........................................................................                       385                858              868        1.1
                                                    Mountain ............................................................................................                163                977              998        2.1
                                                    Pacific ................................................................................................             378              1,219            1,227        0.7
                                                    Puerto Rico ........................................................................................                  51                435              453        4.1
                                               Rural by Region ........................................................................................                  815                618              623        0.7
                                                    New England .....................................................................................                     21                868              878        1.1
                                                    Middle Atlantic ...................................................................................                   54                591              603        2.1
                                                    South Atlantic ....................................................................................                  128                584              584        0.0
                                                    East North Central .............................................................................                     115                638              643        0.9
                                                    East South Central ............................................................................                      155                562              566        0.9
                                                    West North Central ............................................................................                       98                666              668        0.4
                                                    West South Central ...........................................................................                       160                536              542        1.2
                                                    Mountain ............................................................................................                 60                718              717       ¥0.1
                                                    Pacific ................................................................................................              24                804              812        1.0
                                           By Payment Classification:
                                               All hospitals ..............................................................................................            3,330                912              920            0.8
                                                    Large urban areas (populations over 1 million) ................................                                    1,369              1,011            1,019            0.7
                                                    Other urban areas (populations of 1 million of fewer) ......................                                       1,153                870              878            0.9
                                               Rural areas ...............................................................................................               808                619              623            0.7
                                               Teaching Status:
                                                    Non-teaching .....................................................................................                 2,266                771              776            0.7
                                                    Fewer than 100 Residents ................................................................                            815                885              892            0.8
                                                    100 or more Residents ......................................................................                         249              1,287            1,298            0.9
                                                    Urban DSH:
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                                                         100 or more beds .......................................................................                      1,642               968              976             0.8
                                                         Less than 100 beds ...................................................................                          363               696              702             0.8
                                                    Rural DSH:
                                                         Sole Community (SCH/EACH) ...................................................                                   240               575              581             1.0
                                                         Referral Center (RRC/EACH) ....................................................                                 325               649              654             0.7
                                                         Other Rural:
                                                              100 or more beds ................................................................                           29               538              540             0.4



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                                                                Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Rules and Regulations                                                              68963

                                                                                        TABLE III—COMPARISON OF TOTAL PAYMENTS PER CASE—Continued
                                                                                                               [FY 2016 payments compared to FY 2017 payments]

                                                                                                                                                                                Average FY           Average FY
                                                                                                                                                               Number of           2016                 2017        Change
                                                                                                                                                                hospitals      payments/case        payments/case

                                                              Less than 100 beds ............................................................                            142               526               528             0.3
                                               Urban teaching and DSH:
                                                    Both teaching and DSH ....................................................................                           898              1,043             1,052            0.9
                                                    Teaching and no DSH .......................................................................                          109                942               948            0.6
                                                    No teaching and DSH .......................................................................                        1,107                813               820            0.8
                                                    No teaching and no DSH ..................................................................                            408                815               820            0.6
                                               Rural Hospital Types:
                                                    Non special status hospitals ..............................................................                        2,529               948               955             0.7
                                                    RRC/EACH ........................................................................................                    189               772               782             1.4
                                                    SCH/EACH ........................................................................................                    324               706               716             1.4
                                                    SCH, RRC and EACH .......................................................................                            126               748               756             1.1
                                           Hospitals Reclassified by the Medicare Geographic Classification Review
                                             Board:
                                               FY2017 Reclassifications:
                                                    All Urban Reclassified .......................................................................                       532               953               962             0.9
                                                    All Urban Non-Reclassified ...............................................................                         1,936               948               955             0.7
                                                    All Rural Reclassified ........................................................................                      277               650               655             0.9
                                                    All Rural Non-Reclassified .................................................................                         489               578               580             0.3
                                                    Other Reclassified Hospitals (Section 1886(d)(8)(B)) .......................                                          42               599               602             0.5
                                               Type of Ownership:
                                                    Voluntary ...........................................................................................              1,927               926               934             0.8
                                                    Proprietary .........................................................................................                881               820               827             0.8
                                                    Government .......................................................................................                   522               963               969             0.6
                                               Medicare Utilization as a Percent of Inpatient Days:
                                                    0–25 ...................................................................................................             523              1,103             1,114            1.0
                                                    25–50 .................................................................................................            2,122                916               923            0.8
                                                    50–65 .................................................................................................              545                745               750            0.7
                                                    Over 65 ..............................................................................................                89                529               531            0.4



                                             14. On page 57342—                                                       (2) Second column, first partial                              (d) Line 23, the figure ‘‘746’’ is
                                             a. Top of the page—                                                    paragraph—                                                   corrected to read ‘‘755’’.
                                                                                                                      (a) Line 12, the figure ‘‘809’’ is                            b. Middle of the page, the table titled
                                             (1) First column, first full paragraph—
                                                                                                                    corrected to read ‘‘811’’.                                   ‘‘TABLE V—ACCOUNTING
                                             (a) Line 11, the figure ‘‘987’’ is                                       (b) Line 14, the figure’’680’’ is                          STATEMENT: CLASSIFICATION OF
                                           corrected to read ‘‘990’’.                                               corrected to read ‘‘683’’.                                   ESTIMATED EXPENDITURES UNDER
                                             (b) Line 23, the figure ‘‘809’’ is                                       (c) Line 19, the figure ‘‘66’’ is                          THE IPPS FROM FY 2016 TO FY 2017’’
                                           corrected to read ‘‘811’’.                                               corrected to read ‘‘72’’.                                    is corrected to read as follows:

                                             TABLE V—ACCOUNTING STATEMENT: CLASSIFICATION OF ESTIMATED EXPENDITURES UNDER THE IPPS FROM FY 2016
                                                                                         TO FY 2017

                                                                                         Category                                                                                         Transfers

                                           Annualized Monetized Transfers ..............................................................                $755 million.
                                           From Whom to Whom ..............................................................................             Federal Government to IPPS Medicare Providers.



                                             Dated: September 29, 2016.                                             DEPARTMENT OF THE INTERIOR                                   ACTION:    Final rule.
                                           Madhura Valverde,
                                           Executive Secretary to the Department,                                   Fish and Wildlife Service                                    SUMMARY:   We, the U.S. Fish and
                                           Department of Health and Human Services.                                                                                              Wildlife Service (Service), determine
                                           [FR Doc. 2016–24042 Filed 9–30–16; 11:15 am]
                                                                                                                    50 CFR Part 17                                               threatened species status under the
                                           BILLING CODE 4120–01–P                                                   [Docket No. FWS–R4–ES–2015–0132;                             Endangered Species Act of 1973 (Act),
                                                                                                                    4500030113]                                                  as amended, for Kentucky arrow darter
                                                                                                                                                                                 (Etheostoma spilotum), a fish species
                                                                                                                    RIN 1018–AZ09                                                from the upper Kentucky River basin in
                                                                                                                                                                                 Kentucky. The effect of this regulation
                                                                                                                    Endangered and Threatened Wildlife
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                                                                                                                                                                                 will be to add this species to the List of
                                                                                                                    and Plants; Threatened Species Status
                                                                                                                                                                                 Endangered and Threatened Wildlife.
                                                                                                                    for Kentucky Arrow Darter With 4(d)
                                                                                                                    Rule                                                         We are also adopting a rule under
                                                                                                                                                                                 section 4(d) of the Act (a ‘‘4(d) rule’’) to
                                                                                                                    AGENCY:        Fish and Wildlife Service,                    further provide for the conservation of
                                                                                                                    Interior.                                                    the Kentucky arrow darter.


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Document Created: 2016-10-05 03:29:28
Document Modified: 2016-10-05 03:29:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; correction.
DatesThis correction is effective October 1, 2016.
ContactDonald Thompson, (410) 786-4487.
FR Citation81 FR 68947 
RIN Number0938-AS77, 0938-AS88 and 0938-AS41
CFR Citation42 CFR 405
42 CFR 412
42 CFR 413
42 CFR 489

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