Legislation maintains FY03 standardized rates for hospitals.

In the closing hours of the federal fiscal year, Congress approved extension of a 1.6 percent increase of the rural and "other urban" standardized hospital payment rates through March 31, 2004. The extension was part of an amendment to H.R. 3146, a bill to extend the Temporary Assistance for

As a result, the FY03 budget appropriations legislation, which leveled the standardized rates at that of large urban areas for the period of April 1 through September 30, will remain in effect while the conference committee works to reconcile House and Senate proposals regarding legislation that would address Medicare drug benefits and a number of provider payment changes, including making the single standardized rate permanent.

The HHS Secretary has until November 1 to comply with the enacted law, However, the Secretary is required to make payment adjustments over the remaining part of the fiscal year to ensure that hospitals affected by the delay recover any shortfalls that occurred during October.

To read text of the legislation, go to thomas.loc.gov and search on bill number H.R. 3146.