Evaluation of the Rural Secondary Specialty Center Demonstration Project

摘要

The Lake Region Hospital (LRH) and Nursing Home in Fergus Falls, Minnesota was designated a demonstration hospital under Sec. 9302(d) (4) of the Omnibus Budget Reconciliation Act of 1986. Under the agreements governing this demonstration, Lake Region was to receive a different standardized payment rate under the Prospective Payment System (PPS) than other rural hospitals with no special PPS designation. For Medicare discharges occurring during fiscal years 1987-1989, the demonstration hospital received the Rural Referral Center (RRC) rate applicable in their region. In implementing this demonstration, Congress wished to consider the effect an alternative payment system, one that would avoid the closure or restriction of services at hospitals like Lake Region, would have on Part A outlays and access for Medicare beneficiaries. Congress required that the Secretary submit a report on the outcomes of this demonstration no later than six months after its completion. The results of the evaluation are presented in the report.