Set-up for MC Demonstration Project - Read This First.

********Read This First********

Dear Client,

If you are joining the Medicare Demonstration project now for the first time, call RHS before proceeding with the instructions in this letter.

Every facility should load the enclosed diskettes following the
instructions on the diskettes' labels.

If your facility is not part of the Medicare Demonstration project
there is no need for you to follow the instruction on the following
pages.

If your facility is on the Medicare Demonstration Project and you were
always billing as a full charge provider (i.e., you did not have an 
all-inclusive ancillary rate) there is no need for you to follow the
instructions on the following pages.

If your facility is on the Medicare Demonstration Project and you
were billing ancillaries on an all-inclusive rate you will need to
follow the instructions on one of the two following attachements:
1.    If you will be using the Pseudo Rate Structure
      follow the instructions of November 11, 1996 attached titled:
      Set-up for MC Demonstration Project - Pseudo Rate Structure.

2.    If you will be using the Full Charge Structure
      follow the instructions of November 12, 1996 attached titled:
      Set-up for MC Demonstration Project - Full Charge Structure.

As always, please feel free to call our client service personnel. 

Thank you.

Sincerely yours,



Client Service