[Federal Register Volume 60, Number 62 (Friday, March 31, 1995)]
[Notices]
[Page 16657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7867]



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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Method for Evaluating and Establishing Reimbursement Rates for 
Health Care Services Authorized Under the Indian Health Service 
Contract Health Service Regulations--Portland, Alaska, and Nashville 
Areas

AGENCY: Indian Health Service, HHS.

ACTION: Extension of Project Date.

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SUMMARY: The termination date for the Portland Pilot Project now being 
conducted in the Portland, Alaska, and Nashville Areas to determine an 
alternative method of evaluating and establishing reimbursement rates 
for contract health services has been changed from March 31, 1995 to 
September 30, 1996.

FOR FURTHER INFORMATION CONTACT:
J.T. Garrett, Ed.D., Acting Chief, Health Care Administration Branch, 
Division of Health Care Administration/Contract Health Services, Room 
6A-41, 5600 Fishers Lane, Rockville, MD 20857, (301) 443-8373 (This is 
not a toll-free number).

SUPPLEMENTARY INFORMATION: The Indian Health Service (IHS) issued a 
general notice in 56 FR 10566 on March 13, 1991 to inform the public 
that the IHS was conducting a pilot project in the IHS Portland Area. 
This project is designed to determine whether an alternative method of 
evaluating and establishing reimbursement rates for contract health 
services will result in greater participation by health care providers 
and lower costs to IHS.
    The project invited providers within the Portland Area to submit 
their most favorable rate quotations and was scheduled to end on March 
31, 1992. The response was far greater than the expectations of the 
IHS. As a result of this greater than expected response, and the need 
to develop complex rate quotation analysis methodologies for 
facilities, outpatient and professional providers, and the need to 
develop preferred provider lists from these analyses, the termination 
date was extended to March 31, 1993, 57 FR 10671. The termination date 
was again extended to March 31, 1995, 58 FR 11864. Additionally, the 
IHS published notification on June 18, 1992, 57 FR 27262, that 
additional sites were being added to the pilot project to provide more 
information from a wide geographic area.
    The evaluation of the facility component of the project was 
completed January 28, 1994. The overall results of the evaluation were 
positive. The formal review process of the professional provider 
component has not been completed. Extension of the project termination 
date to September 30, 1996 will allow the IHS time to complete the 
evaluation and to assess the results. Based upon the results of the 
evaluation, IHS will formulate, publish and implement a new payment and 
procurement policy for contract health services. We are, therefore, 
extending the termination date of this pilot project from March 31, 
1995 to September 30, 1996.
    This pilot project does not change the current IHS payment policy 
requirement that health care services be procured at rates which do not 
exceed prevailing Medicare rates.

    Dated: March 24, 1995.
Michel E. Lincoln,
Acting Director.
[FR Doc. 95-7867 Filed 3-30-95; 8:45 am]
BILLING CODE 4160-16-M