The Centers for Medicare & Medicaid Services (CMS) issued a reminder that Critical Access Hospitals (CAHs) can bill for facility and professional outpatient services only when physicians or practitioners reassign their billing rights to the CAH, also known as Method II billing. CAHs can prevent claim denials with reason codes 31006 and 31007 (indicating that providers don’t have a reassignment on file in the Provider Enrollment, Chain, and Ownership System (PECOS) if they submit the reassignment application through PECOS or the paper Form CMS-855I. Starting in January 2026, CMS will deny CAH claims for professional services if a reassignment is not in PECOS.
As of July 2025, QCOR reports an estimated 1,400 CAHs currently operational in the U.S.
Click here for the details.