130 CMR 435.404
Provider Eligibility
(A) Introduction. Payment for the services described in 130 CMR 435.000 will be made only to
chronic-disease and rehabilitation hospitals participating in MassHealth as of the date of service.
(B) In State. To participate in MassHealth, a chronic-disease or rehabilitation hospital located in
Massachusetts must:
(1) be licensed or operated by the Massachusetts Department of Public Health or the
Massachusetts Department of Mental Health as a chronic-disease or rehabilitation hospital or
unit;
(2) accept payment according to the methods and amounts as described in 130 CMR 435.405
as payment in full for services; and
(3) participate in the Medicare program.
(C) Out of State.
(1) Out-of-state chronic-disease or rehabilitation hospitalization is reimbursable on a prior-
authorization basis only. The Division will consider a prior-authorization request submitted by
an out-of-state chronic-disease or rehabilitation hospital only under one of the following
circumstances.
(a) The hospital is located in Connecticut, Maine, New Hampshire, New York, Rhode
Island, or Vermont, is within 50 miles of the Massachusetts border, and provides services
to a member who resides in a Massachusetts community near the border of that state.
(b) The hospital provides services to a member who is authorized to reside out of state by
the Massachusetts Department of Social Services.
(c) The hospital provides a member with services that are not available from comparable
resources in Massachusetts, that are generally acceptable medical practice, and that can be
expected to benefit the member significantly.
(2) To participate in MassHealth, an out-of-state chronic-disease or rehabilitation hospital
must obtain a MassHealth provider number and meet the following criteria:
(a) be approved as a chronic-disease or rehabilitation hospital by the governing or
licensing agency in its state;
(b) participate in the Medicare program; and
(c) participate in that state's medical assistance program.
MassHealth
Subchapter Number and Title
4. Program Regulations
Page
Chronic Disease and Rehabilitation
Inpatient Hospital Manual
Transmittal Letter
Date
(D) Managed-Care Program. To participate in the chronic-disease and rehabilitation hospital
managed-care program, a hospital must comply with 130 CMR 435.404(B) and must agree, by
contract with the MassHealth agency, to provide or arrange and pay for all services covered by
MassHealth, except acute-hospital services, for all MassHealth members who are inpatients of the
chronic-disease or rehabilitation hospital and who participate in the hospital's managed-care
program.