Document Headings

                    Document headings vary by document type but may contain                    the following:                  
                -                       the agency or agencies that issued and signed a document                    
                -                       the number of the CFR title and the number of each part                      the document amends, proposes to amend, or is directly                      related to                    
                -                       the agency docket number / agency internal file number                    
                -                       the RIN which identifies each regulatory action listed in                      the Unified Agenda of Federal Regulatory and Deregulatory                      Actions                    

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###### Department of Veterans Affairs

          - 38 CFR Part 17 
          - RIN 2900-AK57 

# AGENCY:

Department of Veterans Affairs. 

# ACTION:

Final rule. 

# SUMMARY:

                        This document amends our medical regulations concerning VA payment for non-VA public or private hospital care provided to eligible VA beneficiaries. This document also amends our medical regulations concerning VA payment for non-VA physician services that are associated with either outpatient or inpatient care provided to eligible VA beneficiaries at non-VA facilities. With certain exceptions, these payments have been based on Medicare methodology. Sometimes VA can negotiate contracts with hospitals or physicians or with their agents to reduce the payment amounts. This document amends these                               ( print page 66637)                            regulations to allow VA to make lower payments based on such negotiations.                     

# DATES:

*Effective Date:*                         November 7, 2000.                     

# FOR FURTHER INFORMATION CONTACT:

Tony Guagliardo, Health Administration Service, (10C3), Veterans Health Administration, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 273-8307. (This is not a toll-free number.) 

# SUPPLEMENTARY INFORMATION:

## Administrative Procedure Act 

This document allows VA to pay hospitals and physicians the amount that they on their own or through agents have negotiated to receive from VA. Accordingly, this document reflects contract actions that are exempt from the prior notice-and-comment and delayed effective date provisions of 5 U.S.C. 553. 

## Unfunded Mandates 

The Unfunded Mandates Reform Act requires (in section 202) that agencies prepare an assessment of anticipated costs and benefits before developing any rule that may result in an expenditure by State, local, or tribal governments, in the aggregate, or by the private sector of $100 million or more in any given year. This rule would have no consequential effect on State, local, or tribal governments. 

## Regulatory Flexibility Act 

The Secretary hereby certifies that this rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. This rule would affect only a small portion of the business of the affected entities. Accordingly, pursuant to 5 U.S.C. 605(b), this rule is exempt from the initial and final regulatory flexibility analysis requirements of §§ 603 and 604. 

## Catalog of Federal Domestic Assistance Numbers 

The Catalog of Federal domestic assistance numbers for the programs affected by this rule are 64.005, 64.007, 64.008, 64.009, 64.010, 64.011, 64.012, 64.013, 64.014, 64.015, 64.016, 64.018, 64.019, 64.022, and 64.025. 

# List of Subjects in 38 CFR Part 17

      - Administrative practice and procedure
      - Alcohol abuse
      - Alcoholism
      - Claims
      - Day care
      - Dental health
      - Drug abuse
      - Foreign relations
      - Government contracts
      - Grant programs health
      - Grant programs-veterans
      - Health care
      - Health facilities
      - Health professions
      - Health records
      - Homeless
      - Medical and dental schools
      - Medical devices
      - Medical research
      - Mental health programs
      - Nursing homes
      - Philippines
      - Reporting and record-keeping requirements
      - Scholarships and fellowships
      - Travel and transportation expenses
      - Veterans

Approved: October 31, 2000. 

Hershel W. Gober, 

Acting Secretary of Veterans Affairs. 

For the reasons set out in the preamble, 38 CFR part 17 is amended as set forth below: 

# PART 17—MEDICAL 

1. The authority citation for part 17 continues to read as follows: 

Authority:38 U.S.C. 501, 1721, unless otherwise noted. 

2. In § 17.55, a new paragraph (k) is added; and the authority citation at the end of the section is revised, to read as follows: 

§ 17.55 

* * * * *

(k) Notwithstanding other provisions of this section, VA, for public or private hospital care covered by this section, will pay the lesser of the amount determined under paragraphs (a) through (j) of this section or the amount negotiated with the hospital or its agent. 

(Authority: 38 USC 513, 1703, 1728; § 233 of P. L. 99-576) 

3. Remove the undesignated center heading immediately before § 17.56. 

4. In § 17.56, a new paragraph (e) is added to read as follows: 

§ 17.56 

* * * * *

(e) Notwithstanding other provisions of this section, VA, for physician services covered by this section, will pay the lesser of the amount determined under paragraphs (a) through (d) of this section or the amount negotiated with the physician or the physician's agent. 

(Authority: 38 U.S.C. 513, 38 U.S.C. 1703, 38 U.S.C. 1728) 

5. Add an undesignated center heading immediately before § 17.57 to read as follows: 

**Use of Community Nursing Home Care Facilities.**

[FR Doc. 00-28472 Filed 11-06-00; 8:45 am] 

BILLING CODE 8320-01-P