(a) For discharges involving new medical services or technologies that meet the criteria specified in Sec. 412.87, Medicare payment will be:
(1) One of the following:
(i) The full DRG payment (including adjustments for indirect medical education and disproportionate share but excluding outlier payments);
(ii) The payment determined under Sec. 412.4(f) for transfer cases;
(iii) The payment determined under Sec. 412.92(d) for sole community hospitals; or
(iv) The payment determined under Sec. 412.108(c) for Medicare-dependent hospitals; plus
(2) If the costs of the discharge (determined by applying the operating cost to charge ratios as described in Sec. 412.84(h)) exceed the full DRG payment, an additional amount equal to the lesser of--
(i) 50 percent of the costs of the new medical service or technology; or
(ii) 50 percent of the amount by which the costs of the case exceed the standard DRG payment.
(b) Unless a discharge case qualifies for outlier payment under Sec. 412.84, Medicare will not pay any additional amount beyond the DRG payment plus 50 percent of the estimated costs of the new medical service or technology. [66 FR 46924, Sept. 7, 2001, as amended at 67 FR 50111, Aug. 1, 2002; 69 FR 49244, Aug. 11, 2004; 72 FR 47411, Aug. 22, 2007]
Payment Adjustment for Certain Replaced Devices