ABSTRACT

Prospective payment systems generally address certain types of providers and associated organizational structures. While the impetus for certain organizations has evolved from the Medicare program, other private third-party payers may also recognize certain of these different types of providers. For instance, a Sole Community Hospital (SCH) is a Medicare concept. Certain rules and regulations must be met before an SCH can enjoy the special benefits of this designation from the Medicare program.* Additionally, other third-party payers will need to pay for services at an SCH, but a given third-party payer may or may not recognize the hospital as being anything more than a duly licensed hospital.