[Federal Register Volume 61, Number 191 (Tuesday, October 1, 1996)]
[Notices]
[Pages 51298-51299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25033]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Indian Health Service


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

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 (CHS) has been changed from September 30, 
1996 to September 30, 1997.

FOR FURTHER INFORMATION CONTACT:
Nancy Davis, Chief, Contract Health Services Branch, Division of Health 
Care Administration/Contract Health Services, Room 6A-39, 5600 Fishers 
Lane, Rockville, MD 20857, (301) 443-2694 (this is not a total-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 CHS 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, 1997 will allow the IHS time to complete the

[[Page 51299]]

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 CHS. We are, therefore, extending the 
termination date of this pilot project from September 30, 1996, to 
September 30, 1997.
    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: September 9, 1996.
Michael H. Trujillo,
Assistant Surgeon General Director.
[FR Doc. 96-25033 Filed 9-30-96; 8:45 am]
BILLING CODE 4160-16-M