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Provider-Based Criteria

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AAMC Documents

Only a high level of integration with the "main provider" will qualify an entity as being provider-based. The regulations set forth seven criteria, all of which must be met in order for an entity to qualify as "provider-based." These criteria focus on the following areas: licensure; ownership and control; administration and supervision; clinical services; financial integration; public awareness; and location in immediate vicinity of the main provider.

The AAMC spearheaded efforts with other hospital organizations to request a delay in the October 10, 2000 effective date of the rule because of a number of ambiguities contained in the April 2000 regulations. CMS granted the delay, making the requirements effective for cost reporting periods beginning on or after January 10, 2001.

On December 21, 2000, the Benefits Improvement and Protection Act (BIPA) of 2000 was signed into law. BIPA includes: (1) a grandfathering provision for facilities that were treated as provider-based on October 1, 2000; (2) alternative criteria for meeting the geographic location requirement; and (3) criteria for temporary treatment as a provider-based entity. CMS published the final regulation implementing these provisions on November 30, 2001.

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