---
kind: "section"
citation: "42 C.F.R. § 412.89"
title: "42"
number: "412.89"
heading: "Payment adjustment for certain replaced devices."
url: "https://uscodex.org/cfr/42/412.89"
---

# §412.89. Payment adjustment for certain replaced devices.

- (a) **General rule.** For discharges occurring on or after October 1, 2007, the amount of payment for a discharge described in [paragraph (b)](#b) of this section is reduced when—
  - (1) A device is replaced without cost to the hospital;
  - (2) The provider received full credit for the cost of a device; or
  - (3) **The provider receives a credit equal to 50 percent or more of the cost of the device.**
- (b) **Discharges subject to payment adjustment.**
  - (1) Payment is reduced in accordance with [paragraph (a)](#a) of this section only if the implantation of the device determines the DRG assignment.
  - (2) CMS lists the DRGs that qualify under [paragraph (b)(1)](#b-1) of this section in the annual final rule for the hospital inpatient prospective payment system.
- (c) **Amount of reduction.**
  - (1) For a device provided to the hospital without cost, the cost of the device is subtracted from the DRG payment.

## Notes

### Amendments

[72 FR 47411, Aug. 22, 2007]

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 50 FR 12741, Mar. 29, 1985, unless otherwise noted.

### Amendments

[72 FR 47411, Aug. 22, 2007]