Article: New board offers potential relief for some hospitals. (Medicare Geographical Classification Review Board) (column)

A little known provision in the Omnibus Budget Reconciliation Act of 1989 (OBRA '89) has the potential to significantly increase Medicare payments for certain hospitals. Whether that potential will be realized depends primarily on how the Health Care Financing Administration (HCFA) implements the provision.

OBRA'89 created the Medicare Geographical Classification Review Board., The new board, which has not yet been appointed, will have the authority to reclassify a hospital participating in Medicare's prospective payment system (PPS) from rural to urban or to change the hospital's PPS wage index.

BOARD COMPOSITION. Like the Provider Reimbursement Review ...

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