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Method of Cost Settlement for inpatient Services for Rural Hospitals Participating Under Demonstrations Authorized by Section 410A of the Medicare Modernization Act. Sections 3123 and 10313 of the Affordable Care Act authorized an expansion of the demonstration and an extension for additional 5-year period. This CR gives instructions for this additional 5-year period. This CR is an extension of CR 5020 for additional 5-year period.

This demonstration reimburses specific hospitals for Medicare inpatient
services through cost based reimbursement. Eight hospitals are continuing from the initial 5-year
demonstration period, mandated by section 410A of the Medicare Modernization Act. Eighteen new
hospitals will be starting the demo starting with cost report periods beginning May 1, 2011 through January
1, 2012. This CR identifies the hospitals, MACs and legacy contractors, and defines the payment
methodology.

Download the Guidance Document

Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: July 22, 2011

DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.