How Percentage of Ownership by a Hospital Impacts ASC and HOPD Billing

Q: What percent of an unattached HOPD and ASC must the hospital own to bill HOPD rates?

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Joan Dentler, ASC Strategies: In order to bill Medicare with the hospital provider number (and collect HOPD reimbursement) the hospital must own 100 percent and the facility must be licensed and accredited by CMS as a hospital.

A CMS-certified ASC must bill Medicare freestanding ASC rates regardless of the hospital’s level of ownership. If a hospital has substantial ownership (usually 51 percent or greater) in a freestanding ASC, some private payors may be willing to negotiate higher rates than they would without the hospital having that level of ownership — sometimes very close to HOPD rates.

Every situation is different and needs to be looked at individually.

Contact Joan Dentler at jdentler@ascstrategies.com. Learn more about ASC Strategies at www.ascstrategies.com.

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