Check out HCFA's current provider-based designation
Check out HCFA's current provider-based designation
The Health Care Financing Administration's (HCFA) policy, published in August 1996, has not been updated until the expected changes this year. Its policy about how to determine whether an entity is provider-based or freestanding has these main points:
· The entity must be physically located in proximity to the provider where it is based, and both facilities must serve the same patient population.
· The entity is an integral and subordinate part of the provider where it is based and is operated under common licensure, except where it conflicts with state requirements.
· The entity is included under the accreditation of the provider where it is based.
· The entity is operated under common ownership and control of the provider where it is based.
· The provider has final responsibility for administrative decisions and personnel action.
· The entity uses significant common resources of the provider, including buildings, equipment, and service personnel.
· The entity director is under direct day-to-day supervision of the provider where it is located.
· Clinical services of the entity and the provider are integrated.
· The entity is publicly acknowledged as being part of the provider.
· The entity and the provider are financially integrated, including an agreement for the sharing of income and expenses and the use of the same accounting system for the same cost reporting period.
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