DETERMINATION OF HOSPITAL COST INDEX

Subpart 1. Adoption of hospital cost index. The hospital cost index will be derived from Health Care Costs as published by Data Resources Incorporated (DRI), 1200 G Street NW, Washington, D.C. 20005. This report is published quarterly. The health care costs report is available through the Minitex interlibrary loan system and this report is incorporated by reference. Subp. 2. Determination of hospital cost index. For the period from the midpoint of each hospital's base year to the midpoint of the rate year, or, when the base year is not rebased, from the midpoint of the prior rate year to the midpoint of the current rate year, the department shall determine the hospital cost index according to items A and B. A. The commissioner shall obtain from Data Resources, Inc., the average annual historical and projected cost change estimates in a decimal format for the operating costs by applying the change in the Consumer Price Index - All Items (United States city average) (CPI-U) in the third quarter of the prior rate year. B. Add one to the amounts in item A and multiply these amounts together. Round the result to three decimal places. Subp. 3. [Repealed, 18 SR 1115]