How does Medicare typically reimburse Critical Access Hospitals?

Medicare typically reimburses Critical Access Hospitals (CAHs) on the basis of reasonable cost for services rendered. This method recognizes the unique circumstances of CAHs, which often serve rural areas and may not have the patient volume to sustain traditional hospital reimbursement models.

Under this reimbursement structure, CAHs submit cost reports detailing the costs incurred for providing services, and Medicare then reimburses them based on these reasonable costs, ensuring that they can cover the expenses associated with delivering care. This is intended to maintain access to healthcare in underserved areas where conventional hospital payment models may not be feasible.

The other choices reflect different reimbursement methods that apply to other types of healthcare settings or services but do not accurately describe the Medicare reimbursement approach for Critical Access Hospitals.