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Statute Regulations Program Instructions


On February 8, 2006, the President signed the Deficit Reduction Act (DRA) of 2005.  Section 5001(c) of DRA requires the Secretary to identify conditions that are:  (a) high cost or high volume or both, (b) result in the assignment of a case to a DRG that has a higher payment when present as a secondary diagnosis, and (c) could reasonably have been prevented through the application of evidence-based guidelines.  Section 5001(c) provides that CMS can revise the list of conditions from time to time, as long as it contains at least two conditions.  DRA Section 5001(c) is available in the Downloads section below.


On July 31, 2008, the Inpatient Prospective Payment System (IPPS) Fiscal Year (FY) 2009 Final Rule display copy was posted to the CMS web site.  To view the IPPS FY 2009 Final Rule, see the Related Links Outside CMS section below.

The IPPS FY 2009 Final Rule includes 10 categories of conditions for the HAC payment provision beginning October 1, 2008. In addition, the IPPS FY 2009 final rule determined the payment implications for the Present on Admission (POA) Indicator reporting options.

CMS created a press release and fact sheet addressing the IPPS FY 2009 Final Rule content.  To view these materials, see the Related Links Inside CMS section below.

CMS has included a discussion of the HAC and POA payment provision in the IPPS FY 2007, 2008, and 2009 Proposed and Final Rules.  To view these regulations, see the Related Links Outside CMS section below.

Program Instructions

On June 13, 2008, Change Request (CR) 6086 was released.  This CR instructs on correct POA Indicator reporting options.  All HAC & POA CRs are available in the Related Links Inside CMS section below.