payment unit
(1) Payment during transition period (A) In general Notwithstanding section 1395f(b) of this title , but subject to the provisions of section 1395e of this title , the amount of the payment with respect to the operating and capital costs of inpatient hospital services of a rehabilitation hospital or a rehabilitation unit (in this subsection referred to as a “rehabilitation facility”), other than a facility making an election under subparagraph (F) in a cost reporting period beginning on or after October 1, 2000 , and before October 1, 2002 , is equal to the sum of— (i) the TEFRA percentage (as defined in subparagraph (C)) of the amount that would have been paid under part A with respect to such costs if this subsection did not apply, and (ii) the prospective payment percentage (as defined in subparagraph (C)) of the product of (I) the per unit payment rate established under this subsection for the fiscal year in which the payment unit of service occurs, and (II) the number of such payment units occurring in the cost reporting period. (B) Fully implemented system Notwithstanding section 1395f(b) of this title , but subject to the provisions of section 1395e of this title , the amount of the payment with respect to the operating and capital costs of inpatient hospital services of a rehabilitation facility for a payment unit in a cost reporting period beginning on or after October 1, 2002 , or, in the case of a facility making an election under subparagraph (F), for any cost reporting period described in such subparagraph, is equal to the per unit payment rate established under this subsection for the fiscal year in which the payment unit of service occurs. (C) TEFRA and prospective payment percentages specified For purposes of subparagraph (A), for a cost reporting period beginning— (i) on or after October 1, 2000 , and before October 1, 2001 , the “TEFRA percentage” is 66⅔ percent and the “prospective payment percentage” is 33⅓ percent; and (ii) on or after October 1, 2001 , and before October 1, 2002 , the “TEFRA percentage” is 33⅓ percent and the “prospective payment percentage” is 66⅔ percent. (D) Payment unit For purposes of this subsection, the term “payment unit” means a discharge. (E) Construction relating to transfer authority Nothing in this subsection shall be construed as preventing the Secretary from providing for an adjustment to payments to take into account the early transfer of a patient from a rehabilitation facility to another site of care. (F) Election to apply full prospective payment system A rehabilitation facility may elect, not later than 30 days before its first cost reporting period for which the payment methodology under this subsection applies to the facility, to have payment made to the facility under this subsection under the provisions of subparagraph (B) (rather than subparagraph (A)) for each cost reporting period to which such payment methodology applies.