IPPS Outlier Reconciliation
This transmittal tells FIs how to implement the policies of IPPS reconciliation and how to apply the time value of money to reconciliation. It also
tells how to calculate cost-to-charge ratios and when to use alternative data for cost-tocharge ratios. Finally, it tells FIs which cost-to-charge ratio to apply in instances of hospital mergers and what to do when errors occur with cost-to-charge ratios and outlier payments.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: October 12, 2005
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