Medicare Benefit Policy Manual (Pub. 100-02), Ch. 13 § 100
Commingling
100 – Commingling
(Rev. 239, Issued: 01-09-18, Effective: 1-22-18, Implementation: 1-22-18)
Commingling refers to the sharing of RHC or FQHC space, staff (employed or
contracted), supplies, equipment, and/or other resources with an onsite Medicare Part B
or Medicaid fee-for-service practice operated by the same RHC or FQHC physician(s)
and/or non-physician(s) practitioners. Commingling is prohibited in order to prevent:
• Duplicate Medicare or Medicaid reimbursement (including situations where the
RHC or FQHC is unable to distinguish its actual costs from those that are
reimbursed on a fee-for-service basis), or
• Selectively choosing a higher or lower reimbursement rate for the services.
RHC and FQHC practitioners may not furnish or separately bill for RHC or FQHC-
covered professional services as a Part B provider in the RHC or FQHC, or in an area
outside of the certified RHC or FQHC space such as a treatment room adjacent to the
RHC or FQHC, during RHC or FQHC hours of operation.
If an RHC or FQHC practitioner furnishes an RHC or FQHC service at the RHC or
FQHC during RHC or FQHC hours, the service must be billed as an RHC or FQHC
service. The service cannot be carved out of the cost report and billed to Part B.
If an RHC or FQHC is located in the same building with another entity such as an
unaffiliated medical practice, x-ray and lab facility, dental clinic, emergency room, etc.,
the RHC or FQHC space must be clearly defined. If the RHC or FQHC leases space to
another entity, all costs associated with the leased space must be carved out of the cost
report.
RHCs and FQHCs that share resources (e.g., waiting room, telephones, receptionist, etc.)
with another entity must maintain accurate records to assure that all costs claimed for
Medicare reimbursement are only for the RHC or FQHC staff, space, or other resources.
Any shared staff, space, or other resources must be allocated appropriately between RHC
or FQHC and non-RHC or non-FQHC usage to avoid duplicate reimbursement.
This commingling policy does not prohibit a provider-based RHC from sharing its health
care practitioners with the hospital emergency department in an emergency, or prohibit
an RHC practitioner from providing on-call services for an emergency room, as long as
the RHC would continue to meet the RHC conditions for coverage even if the practitioner
were absent from the facility. The RHC must be able to allocate appropriately the
practitioner's salary between RHC and non-RHC time. It is expected that the sharing of
the practitioner with the hospital emergency department would not be a common
occurrence.
The A/B MAC has the authority to determine acceptable accounting methods for
allocation of costs between the RHC or FQHC and another entity. In some situations, the
practitioner’s employment agreement will provide a useful tool to help determine
appropriate accounting.