42 CFR § 412.340 - Fully prospective payment methodology.
---
identifier: "/us/cfr/t42/s412.340"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 412.340 - Fully prospective payment methodology."
title_number: 42
title_name: "Public Health"
section_number: "412.340"
section_name: "Fully prospective payment methodology."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "412"
part_name: "PROSPECTIVE PAYMENT SYSTEMS FOR INPATIENT HOSPITAL SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302 and 1395hh."
regulatory_source: "50 FR 12741, Mar. 29, 1985, unless otherwise noted."
cfr_part: "412"
---
# 412.340 Fully prospective payment methodology.
A hospital paid under the fully prospective payment methodology receives a payment per discharge based on a proportion of the hospital-specific rate and the Federal rate as follows:
| Cost reporting periods beginning on or after: | Federal rate percentage | Hospital-specific rate percentage |
| --- | --- | --- |
| October 1, 1991 | 10 | 90 |
| October 1, 1992 | 20 | 80 |
| October 1, 1993 | 30 | 70 |
| October 1, 1994 | 40 | 60 |
| October 1, 1995 | 50 | 50 |
| October 1, 1996 | 60 | 40 |
| October 1, 1997 | 70 | 30 |
| October 1, 1998 | 80 | 20 |
| October 1, 1999 | 90 | 10 |
| October 1, 2000 | 100 | 0 |