D.C. Mun. Regs. tit. 29, r. 29-4816
Reimbursement to the specialty hospitals reimbursed on a PS basis shall be calculated as set forth in this section.
Payment based on the PS-APR-DRG method shall be determined as follows:
APR-DRG Relative Weight for Each Claim
x
Final Base Rate
+
Outlier Payment
APR-DRG Relative Weight: DHCF shall apply national hospital specific relative value (HSRV) service weights, supplied by 3MTM, for each APR-DRG. The case mix adjustment factor may be adjusted to account for any unexpected change in case mix related to improved coding practices.
Final Base Rate: The PS-APR-DRG specialty hospitals shall be combined into one (1) peer group for purposes of establishing base payment rates. The final base year payment rate for each PS-APR-DRG specialty hospital shall be equal to the peer group average cost per discharge, calculated using the weighted average of the hospital specific cost per discharge (CPD) for each specialty hospital in the peer group.
The hospital specific CPD shall be adjusted for outlier reserve and shall be determined using the following formula.
Medicaid inpatient operating costs
(Standardized for variations in case mix)
÷
Number of Medicaid discharges in FY 2013
The hospital specific CPD shall be determined by dividing Medicaid inpatient operating costs by the Number of Medicaid discharges in FY 2013. The specialty hospital specific CPD, adjusted for case mix, shall be reduced by a net one percent (1%). The one percent (1%) reduction shall be based on five percent (5%) of the cost reserved for payment of claims for the highest cost stays and four percent (4%) of the cost restored to account for the reduction in payment for low cost claims.
Medicaid inpatient operating costs shall be calculated by applying the specialty hospital-specific operating CCR, pursuant to Subsection 4814.10, to the allowed charges from the base year claims data.
D.C. Mun. Regs. tit. 29, r. 29-4816