Payment Adjustments

10.6 - Payment Adjustments (Rev. 1445, Issued: 02-08-08; Effective: 01-01-08; Implementation: 03-10-08) Payments are adjusted to reflect geographic differences in labor-related costs. In addition, beginning January 1, 2006, rural sole community hospitals (SCHs) receive a 7.1 percent increase in payments for most services, with certain exceptions, including separately paid drugs and biologicals. This adjustment is authorized under section 1833(t)(13)(B) of the Act, and implemented in accordance with section 419.43(g) of the regulations. The adjustment is automatically applied in Pricer. The Secretary may also establish other adjustments or special adjustments for certain classes of hospitals.