(1) Cost based reimbursement is applicable to exempt hospitals, preferred out-of-state hospitals with dates of admission from January 1, 2007 through September 30, 2008, and critical access hospitals (CAH).

(2) Exempt hospitals, preferred out-of-state hospitals, and CAH interim reimbursement is based on a hospital specific Medicaid inpatient cost to charge ratio (CCR), not to exceed 100%.

(3) CAH and exempt hospital final reimbursement is for reasonable costs of hospital services limited to 101% of allowable costs, as determined in accordance with ARM 37.86.2803(1).

(a) Preferred out-of-state hospital final reimbursement is for reasonable costs of hospital services limited to 100% of allowable costs, as determined in accordance with ARM 37.86.2803(1). Preferred hospitals are reimbursed on a cost basis for dates of admission from January 1, 2007 until September 30, 2008.

(4) Where applicable, the statewide CCR for cost based hospitals is determined in accordance with ARM 37.86.2905(6).

(5) Cost based hospital reimbursement for capital expenses is as determined in accordance with ARM 37.86.2912(3).

(6) Certified registered nurse anesthetist (CRNA) reimbursement for exempt and CAH hospitals is as determined in accordance with ARM 37.86.2924.

(7) All diagnostic services are included in the cost-based payment. Diagnostic services that are performed at a second hospital because the services are not available at the first hospital (e.g., a CT scan) are included in the first hospital's payment. This includes transportation to the second hospital and back to the first hospital. Arrangement for payment to the transportation provider and the second hospital where the services were actually performed must be between the first and second hospital and the transportation provider.