Payment for CAH Method II and Ambulance Services

CMS posted a correction to the reimbursement language which clarifies the payment for outpatient facility services under Method II and payment for ambulance services furnished by a CAH or an entity owned and operated by a CAH to be 101% of reasonable costs. Previous language indicated payment would be at reasonable cost. The correction is effective retroactively to cost reporting periods beginning on or after January 1, 2004. CMS does not believe the correction will result in additional payments to CAHs for prior periods as CMS believes they have paid CAHs for these services at 101% of reasonable costs during these prior periods. The correction is listed in the June 2 Federal Register, page 30965 and can be accessed by clicking here.