What is the Rural Health Clinic Cost Report?
All federally, certified Rural Health Clinics must submit an annual cost report. For certified Rural Health Clinics the cost report is the means by which Medicare determines how much reimbursement is due to the provider, or due back from the provider, for RHC services rendered to Medicare beneficiaries during the cost reporting period. The Rural Health Clinic cost report incorporates calculations and accounting applications that include a clinics allowable cost and the number of RHC visits to determine the clinic’s reimbursement rate (up to the national capped amount for independent, free-standing clinics). A certified Rural Health Clinic’s Cost Per Visit Rate = Allowable RHC Costs/Visits. Allowable costs are costs actually incurred by the clinic which are reasonable in amount, necessary and proper to the delivery of RHC services. The total number of RHC visits is aligned with the RHC encounter definition.
