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Establishment of the Per Resident Amount (PRA) for a New Teaching Hospital

A new PRA is equal to the lower of the hospital’s actual cost per resident incurred in the base period, or the weighted mean average PRA of all of the other existing teaching hospitals located in the same core-based statistical area (CBSA) as the new teaching hospital. The actual cost per resident is determined from the final settled base year cost report.  Therefore, the PRA will not be formally established until that time.  For rates determined prior to that time will be based on the locality adjusted national.

Reviewed: 12.02.22


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