Capital update factor: a new era approaches.
The Health Care Financing Administration (HCFA) has constructed a preliminary model of a new capital update method which is consistent with the framework being developed to refine the update method for PPS operating costs. HCFA's eventual goal is to develop a single update framework for operating and capital costs. Initial results suggest that adopting the new capital update method would reduce capital payments substantially, which might intensify creditor's concerns about extending loans to hospitals.
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D002201:Capital Expenditures; D014487:Centers for Medicare and Medicaid Services, U.S.; D003361:Cost Allocation; D003862:Depreciation; D004865:Equipment and Supplies, Hospital / Q000191:economics; D005377:Financial Management, Hospital / Q000379:methods*; D016344:Medicare Part A; D011445:Prospective Payment System / Q000639:trends*; D014481:United States