CRHC study materials
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CRHC cheat sheet

CRHC · Keep the key ideas within reach.

Quick reference

Rural Health Clinic Program Requirements and Regulatory Framework

  • RHC must be located in a non-urbanized area (Census Bureau definition) or a designated health professional shortage area (HPSA) to qualify for Medicare certification.

  • RHC must employ a nurse practitioner, physician assistant, or certified nurse midwife at least 50% of the time the clinic operates, and a physician must supervise.

  • RHC certification requires compliance with 42 CFR Part 491; survey via State Survey Agency using the RHC survey protocol.

  • RHC must have a written policy for providing services in a culturally competent manner and ensure services are provided in a language the patient understands.

  • RHC must be primarily engaged in providing outpatient primary care services; inpatient services are not covered.

  • RHC must have a health care professional available to furnish services during all hours the clinic is open.

  • RHC must have a quality assessment and performance improvement (QAPI) program as a condition for participation.

  • RHC must post a notice of its hours of operation and after-hours contact information.

Quick reference

Medicare and Medicaid Billing, Coding, and Reimbursement

  • Medicare pays RHCs an all-inclusive rate (AIR) per qualifying visit, subject to a per-visit payment limit; the AIR is adjusted annually by the Medicare Economic Index (MEI).

  • Qualifying visits include those furnished by physicians, NPs, PAs, CNMs, clinical psychologists, and clinical social workers; services must be medically necessary and face-to-face.

  • RHCs bill Medicare Part A for core services using the 71x bill type; Part B services (e.g., certain vaccines) are billed separately.

  • Medicare coinsurance is 20% of the AIR after the deductible; Medicaid may cover coinsurance for qualified beneficiaries.

  • RHCs may use the cost-based method or the standard payment method (if elected) for Medicare reimbursement.

  • Preventive services like the welcome to Medicare visit and annual wellness visit are covered but may have different payment rules.

  • RHCs must use appropriate CPT/HCPCS codes for services; incorrect coding can lead to claim denials or recoupment.

  • Telehealth services furnished by RHCs are reimbursed as if furnished in-person, with the AIR, when conditions are met.

Quick reference

Clinical Operations, Scope of Services, and Care Coordination

  • RHC scope of services includes primary care, prenatal care, and other outpatient services; services must be furnished by or under the supervision of an RHC practitioner.

  • Care coordination includes referrals, discharge planning, and patient education; RHCs must have a process for tracking referrals and ensuring follow-up.

  • RHCs must have a written plan for handling emergencies, including transfer agreements with local hospitals.

  • RHCs must maintain a health record for each patient that is accurate, complete, and readily accessible; records must be retained per state and federal requirements.

  • RHCs must provide services in a manner that ensures patient rights, including privacy and confidentiality (HIPAA).

  • RHCs must have a process for medication management, including prescribing, dispensing, and reconciliation.

  • RHCs must have an infection control program that follows accepted standards of practice (e.g., CDC guidelines).

Quick reference

Compliance, Auditing, and Program Integrity

  • RHCs must comply with the False Claims Act; knowingly submitting false claims can result in treble damages and penalties.

  • RHCs must have a compliance program that includes written policies, a compliance officer, training, and auditing/monitoring.

  • RHCs are subject to periodic audits by Medicare Administrative Contractors (MACs) and Recovery Audit Contractors (RACs).

  • The Office of Inspector General (OIG) Work Plan lists areas of focus; RHCs should monitor for relevant audits.

  • RHCs must report and return overpayments within 60 days of identification (60-day rule).

  • RHCs must screen employees and contractors against the OIG List of Excluded Individuals/Entities (LEIE) and the System for Award Management (SAM).

  • RHCs must adhere to the Stark Law (physician self-referral) and Anti-Kickback Statute; arrangements with referral sources must be reviewed.

Quick reference

Financial Management, Cost Reporting, and Revenue Cycle

  • RHCs must file an annual Medicare cost report (Form CMS-222-92) within 5 months after the end of the fiscal year.

  • The cost report determines the AIR and any reconciliation; it must include allowable costs and statistics (visits, charges, etc.).

  • Revenue cycle management includes patient registration, coding, billing, collections, and denial management.

  • RHCs must establish financial policies, including charity care and financial assistance, and comply with IRS 501(r) if tax-exempt.

  • RHCs should monitor key revenue cycle metrics: days in accounts receivable, denial rate, and net collection rate.

  • RHCs must maintain proper documentation to support charges; lack of documentation can lead to claim denials.

  • RHCs must ensure proper cost allocation for shared costs (e.g., space, staff) across programs.

Quick reference

Quality Improvement, Patient Safety, and Population Health

  • RHCs must have an ongoing QAPI program that tracks quality measures and implements improvements.

  • RHCs should participate in quality reporting programs (e.g., MIPS) if eligible; reporting can affect payment adjustments.

  • Patient safety initiatives include medication reconciliation, fall prevention, and hand hygiene compliance.

  • Population health management involves identifying at-risk patients, providing preventive care, and managing chronic conditions.

  • RHCs should use health information technology (e.g., EHRs) to support quality measurement and improvement.

  • RHCs must have a process for reporting and investigating adverse events and sentinel events.

  • RHCs should engage patients in quality improvement through surveys and feedback mechanisms.

Quick reference

Leadership, Governance, and Human Resources

  • RHC must have a governing body that is responsible for the clinic's operations and compliance with regulations.

  • RHC must have a clinic manager or director with authority to manage daily operations.

  • RHC must have a written organizational chart and clear lines of authority.

  • Human resources policies must include credentialing and privileging of practitioners, background checks, and ongoing performance evaluations.

  • RHC must ensure staff are licensed, certified, or registered as required by state law and have appropriate training.

  • RHC must have a process for handling personnel issues, including grievances and disciplinary actions.

  • Leadership must ensure a culture of safety and compliance, including regular communication and training.

Quick reference

Health Policy, Licensure, and Survey/Certification Readiness

  • RHCs must comply with state licensure laws, which may vary; some states require a specific RHC license.

  • Medicare certification is obtained through the State Survey Agency (SSA) and CMS; surveys may be announced or unannounced.

  • RHCs must be prepared for surveys by maintaining documentation, conducting mock surveys, and training staff.

  • Common survey deficiencies include lack of compliance with conditions of participation (CoPs), inadequate QAPI, and infection control issues.

  • Plan of correction (POC) must be submitted for deficiencies; failure to correct can lead to termination from Medicare.

  • RHCs must stay informed about changes in healthcare policy, such as updates to Medicare payment rules and telehealth policies.

  • RHCs should participate in industry associations and monitor CMS updates for regulatory changes.