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25.2.2.5 Children's Hospitals
Inpatient hospital stays in designated children's hospitals are reimbursed according to the TEFRA reimbursement principles on a reasonable cost basis. Designated children's hospitals are reimbursed on a percentage of the hospital's standard charges derived from the hospital's most recent tentative or final Medicaid cost report settlement.
To be designated as a children's hospital, the hospital must have a provider agreement with Medicare and be engaged in delivering services to patients who are predominantly younger than 18 years of age. A designated children's hospital is excluded from the Medicare/Medicaid prospective payment system per 42 Code of Federal Regulations (CFR) (Subsection) 412.23.
Note: Children's hospitals that are reimbursed according to the TEFRA methodology may submit interim claims before discharge and must submit an interim claim if the client remains in the hospital past the hospital's fiscal year end.
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