86-7.3 Adjustments to rate of payment.

(a) For the calendar year 1992, for each region, the direct component as identified in section 86-7.2(b)(2) and the mean indirect price per day divided by the regional indirect input price adjustment factor for the patient classification group as identified in section 86-7.2(b)(3) shall be trended to 1992 by a roll factor to project allowable cost increases for the rate period. The trend factors used in the calculation of the roll factor shall be determined in a manner consistent with the methodology set forth in section 86-2.12. A weighted average roll factor shall be calculated for each region. Relative weights shall be assigned to each trend factor group within the region and shall be based upon the aggregate operating portion of RHCF rates as defined in section 86-2.10(a)(7) using the initial July 1, 1992 RHCF rate certified by the commissioner pursuant to section 2807(3) of the Public Health Law times the 1990 RHCFs' patient days. The weighted average roll factor for each region shall be calculated by multiplying the weights for each trend factor group within each region times the respective July 1, 1992 roll factors determined pursuant to section 86-2.12 excluding prospective adjustments made pursuant to section 86-2.12(f).

(b) For calendar years beginning January 1, 1993 and on January 1 of each subsequent year, the 1992 rate of payment as identified in section 86-7.2(c) shall be increased by a roll factor to project allowable cost increases for the rate period. The trend factor(s) used in the calculation of the roll factor shall be determined in a manner consistent with the methodology set forth in section 86-2.12. A weighted average roll factor shall be calculated for each region. The weighted average roll factor for the rate period shall be computed utilizing the weights developed from the computation in subparagraph (a) of this paragraph adjusted to reflect any changes in trend factor groups made pursuant to section 86-2.12. The regional weighted average roll factor for the rate period shall also include the prospective annual adjustments to the RHCF trend factors made pursuant to section 86-2.12(f).

(c) The rate of payment shall not exceed customary charges to the general public.

Effective Date:

Monday, December 20, 1993

Doc Status:

Complete