True or False: Each contract record (NCC) can only reference one locale record (LCL) for Medicare IPPS calculations.

True or False: Each contract record (NCC) can only reference one locale record (LCL) for Medicare IPPS calculations.

• A. True
• B. Only one locale record can be specified directly in the contract
• C. No locale record can be specified
• D. Locale records are deprecated

Answer: (B)

In Medicare IPPS calculations, a contract record (NCC) is paired with a locale record (LCL) to define the geographic-adjustment context for payments. The setup is designed so that only one locale can be bound directly to an NCC. This single direct link provides a clear, unambiguous calculation basis, since wage indices and other locale-specific factors must be applied consistently to that contract’s calculations. If multiple locales were allowed to be attached directly, it would create ambiguity about which locale’s adjustments to use for a given calculation. If you need to cover different locales, you would handle that through separate contracts or through other configuration paths rather than attaching multiple locale records to the same NCC. Locale records themselves are active and used for determining IPPS adjustments, not deprecated.

In Medicare IPPS calculations, a contract record (NCC) is paired with a locale record (LCL) to define the geographic-adjustment context for payments. The setup is designed so that only one locale can be bound directly to an NCC. This single direct link provides a clear, unambiguous calculation basis, since wage indices and other locale-specific factors must be applied consistently to that contract’s calculations. If multiple locales were allowed to be attached directly, it would create ambiguity about which locale’s adjustments to use for a given calculation.

If you need to cover different locales, you would handle that through separate contracts or through other configuration paths rather than attaching multiple locale records to the same NCC. Locale records themselves are active and used for determining IPPS adjustments, not deprecated.