Medicare Claims Processing Manual (Pub. 100-04), Ch. 3 § 20.1.2.4
Transfers
20.1.2.4 - Transfers
(Rev. 2111, Issued: 12-03-10, Effective: 04-01-11, Implementation: 04-04-11)
A. Transfers Between IPPS Hospitals
For transfers between IPPS hospitals, the transferring hospital is paid based upon a per diem
rate. The transferring hospital may be paid a cost outlier payment. The outlier threshold for
the transferring hospital is equal to the outlier threshold for non-transfer cases, divided by the
geometric mean length of stay for the DRG, multiplied by a number equal to the length of
stay for the case plus one day.
The payment to the final discharging hospital is made at the full prospective payment rate.
The outlier threshold and payment are calculated the same as any other discharge without a
transfer. For further information on transfers between IPPS hospitals, see §40.2.4 part A of
this manual.
B. - Transfers from an IPPS Hospital to Hospitals or Units Excluded from IPPS that do
not Fall within a DRG that is Subject to the Postacute Care Transfer Policy
For transfers from an IPPS hospital to a hospital or unit excluded from IPPS with a DRG that
is not subject to the postacute care transfer policy, the transferring hospital is paid the full
IPPS rate. The transferring hospital may be paid a cost outlier payment. The outlier
threshold and payment are calculated the same as any other discharge without a transfer.
The payment to the final discharging hospital or unit is made at the rate of its respective
payment system. For further information on transfers from an IPPS hospital to hospitals or
units excluded from IPPS that do not fall within a DRG that is subject to the postacute care
transfer policy, see §40.2.4 part B of this manual.
C. - Transfers from an IPPS Hospital to Hospitals or Units Excluded from IPPS that
Fall within a DRG that is Subject to the Postacute Care Transfer Policy
For transfers from an IPPS hospital to a hospital or unit excluded from IPPS with a DRG that
is subject to the postacute care transfer policy, the transferring hospital is paid based upon a
per diem rate. The transferring hospital may be paid a cost outlier payment. In general, the
outlier threshold for the transferring hospital is equal to the outlier threshold for non-transfer
cases, divided by the geometric mean length of stay for the DRG, multiplied by a number
equal to the length of stay for the case plus one day. If a discharge is assigned to a special
pay DRG subject to the post acute care transfer policy the outlier threshold is equal to the
fixed-loss cost outlier threshold for non-transfer cases, divided by the geometric mean length
of stay for the DRG, multiplied by 0.5 plus the product of the 0.5 multiplied by a number
equal to the length of stay plus one day multiplied by 0.5.
The payment to the final discharging hospital or unit is made at the rate of its respective
payment system. For further information on transfers from an IPPS hospital to hospitals or
units excluded from IPPS that fall within a DRG subject to the postacute care transfer policy,
see §40.2.4 part C and D.