Code of Federal Regulations Title 42. Public Health § 42.403.321 State systems for hospital outpatient services

(1) Upon application for approval, the State must submit estimates and data that include, but are not limited to, projections for the first 12–month period covered by the assurance for each hospital, in both the aggregate and on an average cost per service and payment basis, of Medicare outpatient expenditures under Medicare principles of reimbursement;  parallel projections of Medicare outpatient expenditures under the State system;  and the resulting cost or savings to Medicare independent of the State system for hospital inpatient services.

(2) The State must submit separate statewide projections for each year of the 36–month period of the aggregate outpatient expenditures for each system. The projections submitted under this paragraph must—

(3) The State must provide a detailed explanation of the reasons for any difference between the data or assumptions used for the separate projections.