Question:

Can we bill for the cost of renting equipment for a diagnostic test?

Answer:

According to §2203.3 of the Provider Reimbursement Manual, Part 1, rental of equipment by a provider from an outside vendor does not in itself give rise to an ancillary charge. Where a provider rents equipment, the reasonable rental charge is includable in allowable costs of the appropriate department and is subject to apportionment in the same way as other costs of the same department.

What this means to respiratory therapy departments is that you may not establish a separate rental charge or per-use charge for equipment even if it is rented and not owned by the hospital or facility where used. Incorporate the rental cost of the equipment or item into the total charge for the diagnostic test or procedure.

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