1. (1) High cost out lierrates of payment shall be calculated by reducing total billed patient charges, as approved by IPRO, to cost, as determined based on the hospital's ratio of cost to charges. Such calculation shall use the most recent data available as subsequently updated to reflect the data from the year in which the discharge occurred, and shall equal 100 percent of the excess costs above the high cost outlier threshold. High cost outlier thresholds shall be developed for each individual DRG and adjusted by hospital-specific wage equalization factors (WEF) and increased by the Consumer Price Index from the base period used to determine the statewide base price and the rate period.

2. (2) A non-public, not-for-profit general hospital which has not established an ancillary and routine charges schedule shall be eligible to receive high-cost outlier payments equal to the average of high-cost outlier payments received by comparable hospitals, as determined using the following criteria:

   1. (i) downstate hospitals;
   2. (ii) hospitals with a Medicaid fee for service case mix greater than 1.75;
   3. (iii) hospitals with Medicaid fee for service revenue greater than $30 million of total revenue; and
   4. (iv) hospitals with a proportion of Medicaid fee for service outlier to inlier cases greater than 3.0 percent.

3. (b) Rates of payment to non-exempt hospitals for inpatients who are transferred to another non-exempt hospital shall be calculated on the basis of a per diem rate for each day of the patient's stay in the transferring hospital, subject to the exceptions set forth in paragraphs (1), (2) and (3) of this subdivision. The total payment to the transferring facility shall not exceed the amount that would have been paid if the patient had been discharged. The per diem rate shall be determined by dividing the DRG case-based payment per discharge as defined in section 86-1.15(b)of this Subpart by the arithmetic inlier length of stay (LOS) for that DRG, as defined in section 86-1.15(o) of this Subpart, and multiplying by the transfer case's actual length of stay and by the transfer adjustment factor of 120 percent. In transfer cases where the arithmetic inlier LOS for the DRG is equal to one, the transfer adjustment factor shall not be applied.

   1. (1) Transfers among more than two hospitals that are not part of a merged facility shall be reimbursed as follows:

      1. (i) the facility which discharges the patient shall receive the full DRG payment; and
      2. (ii) all other facilities in which the patient has received care shall receive a per diem rate unless the patient is in a transfer DRG.
   2. (2) A transferring facility shall be paid the full DRG rate for those patients in DRGs specifically identified as transfer DRGs.
   3. (3) Transfers among non-exempt hospitals or divisions that are part of a merged or consolidated facilityshall be reimbursed as if the hospital that first admitted the patient had also discharged the patient.
   4. (4) Services provided to neonates discharged from a hospital providing neonatal specialty services to a hospital reimbursed under the case payment system for purposes of weight gain shall be reimbursed and assigned to the applicable APR-DRG upon admission or readmission.

(a)