OAR 309-015-0020
Establishing the Base Year and the Initial Maximum Allowable Rate
(1)
Base year. In order to establish a base year rate, the Medicaid Intermediary used cost statements which overlapped the base period (July 1, 1981 through June 30, 1982) for all Oregon hospitals who were either:(a)
Licensed as psychiatric hospitals on the effective date of these rules (10-1-83) and in operation during the base period; or(b)
Were applicants for Joint Commission on Accreditation of Hospitals (JCAH) accreditation as a psychiatric hospital on the first effective date of these rules and had operated as a licensed hospital during the base period.(2)
Reporting period adjustments. If a psychiatric hospital’s cost report was for a period either longer or shorter than 12 months, the Medicaid allowable costs were reduced or increased, as appropriate, by multiplying the total allowable costs by the ratio that 12 months bore to the number of months in the hospital’s report period. This procedure resulted in a prorated 12-month cost projection for use in establishing the statewide average per diem rate for the base period.(3)
Inflation factor adjustments. If a psychiatric hospital had a fiscal period other than the base period, the hospital’s Medicaid allowable costs were adjusted by applying the relevant inflation factors from the Medicare market basket index so that the Medicaid costs corresponded to the base period. The inflation factors were applied to the interval between the mid-point of the hospital’s fiscal period and the mid-point of the base period. The number of Medicaid patient days in the hospital’s fiscal period were used as the number of days in the base period.(4)
Rate calculation. The total Medicaid allowable costs from all hospitals included in the base period divided by the total number of Medicaid patient days from all hospitals included in the base period yielded the statewide average per diem cost (maximum allowable rate) for the base period.
Source:
Rule 309-015-0020 — Establishing the Base Year and the Initial Maximum Allowable Rate, https://secure.sos.state.or.us/oard/view.action?ruleNumber=309-015-0020.