A RESIDENT-BASED REIMBURSEMENT SYSTEM FOR INTERMEDIATE CARE FACILITIES FOR THE MENTALLY-RETARDED

In this article, the authors present a resident-based reimbursement sy stem for intermediate care facilities for the mentally retarded (ICFs- MR), which represent a large and growing proportion of the Medicaid bu dget The statistical relationship between resident disability level an d the expected cost of caring for the individual is estimated, allowin g for the prediction of expected resource use across the population of ICF-MR residents The system incorporates an indirect cost rate, a bas e direct care rate (constant across all providers), and an individual- specific direct care rate, based on the expected cost of care.