Medicare Claims Processing Manual (Pub. 100-04), Ch. 3 § 100.4
Billing for Services After Termination of Provider Agreement
100.4 - Billing for Services After Termination of Provider Agreement
(Rev. 1, 10-01-03)
HO-404, HH-433
An agreement with a hospital is not time-limited and has no fixed expiration date.
A. - Part A Billing
A hospital whose provider agreement terminates (voluntarily or involuntarily), may be
reimbursed for covered Part A inpatient services for up to 30 days for services furnished on
or after the effective date of termination for beneficiaries who were admitted prior to the
termination date.
EXAMPLE:
Termination date: 6/30/01
Beneficiary admitted on or before 6/29/01
Payment can be made: 6/30/01, up to and including 7/29/01
B. - Assuring That Hospitals Continue to Bill for Covered Services
Upon cessation of a hospital's participation in the program, it supplies the Regional Office
the names and HICNs of Medicare beneficiaries entitled to have payment made on their
behalf, and continues to bill for covered services in accordance with subsection A. It
continues to submit "no-payment" death or discharge bills for Medicare beneficiaries
admitted prior to the termination of the provider's agreement.
C. - Part B Billing
Following termination of its agreement, a hospital is considered to be a "nonparticipating
hospital." An inpatient of such a hospital who has Part B coverage, but for whom Part A
benefits have been exhausted, or are otherwise not available, is entitled to reimbursement for
those services that are covered in a nonparticipating institution. Services, if rendered, must
be billed on Form CMS-1500 and sent to the A/B MAC (B). If a hospital has been billing on
the CMS-1554 for physician services, it continues to do so.
If a terminated hospital meets the necessary criteria, it may be certified to provide emergency
services, and will be assigned an emergency provider number (E suffix). This procedure is
not automatic, however, and hospitals which are terminated for Life Safety Code violations
may never be able to qualify as emergency providers. Should a terminated hospital later
qualify as an emergency provider, billings are handled by the designated emergency FI.