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National Intelligence Report

Medicare Payment & Claims Advisory
February 12, 2007

Effective January 1 of this year, cost-based reimbursement for outpatient clinical laboratory tests furnished by small rural hospitals is extended for an additional year. Generally, these tests are paid via the Medicare fee schedule, but the Medicare Modernization Act of 2003 added payment on a reasonable cost basis for these tests to hospitals with fewer than 50 beds in qualified rural areas for cost reporting periods beginning July 1, 2004.

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