# Medicare Program; Prospective Payment System for Long-Term Care Hospitals: Implementation and FY 2003 Rates
> **Centers for Medicare and Medicaid Services** · Final rule. · Published 2002-08-30 · Effective 2002-10-01 · 67 FR 55954
## Document
- **Document number:** 02-22016
- **Category:** medicare
- **Sub-agency:** Centers for Medicare and Medicaid Services
- **Federal Register citation:** 67 FR 55954
- **CFR reference:** 42 CFR 412
- **Publication date:** 2002-08-30
- **Effective date:** 2002-10-01
- **HHS docket:** CMS-1177-F
## Abstract

This final rule establishes a prospective payment system for Medicare payment of inpatient hospital services furnished by long-term care hospitals (LTCHs) described in section 1886(d)(1)(B)(iv) of the Social Security Act (the Act). This final rule implements section 123 of the Medicare, Medicaid, and SCHIP [State Children's Health Insurance Program] Balanced Budget Refinement Act of 1999 (BBRA) and section 307(b) of the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (BIPA). Section 123 of the BBRA directs the Secretary to develop and implement a prospective payment system for LTCHs. The prospective payment system described in this final rule replaces the reasonable cost-based payment system under which LTCHs are currently paid.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2002/08/30/02-22016/medicare-program-prospective-payment-system-for-long-term-care-hospitals-implementation-and-fy-2003)
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