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‘Primary engagement’ rule costs some hospitals Medicare agreements

March 4, 2016

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To be eligible to participate in Medicare, hospitals must be “primarily engaged” in providing inpatient services, a requirement that has cost numerous smaller or specialized hospitals their Medicare provider agreements due to low inpatient volumes, according to Lexology.

Many of these agreement terminations rely on a very narrow interpretation of “primary engagement,” with officials relying on dictionary defintions in many cases.

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