Method E Cost Reports for Indian Health Services (Rev. 1040, 09-11-06)

by  Jared Staheli
June 25th, 2015

The IHS has used the Method E cost report since it began filing cost reports with CMS in 1998. Method E is the method of cost apportionment which is used to calculate the all inclusive outpatient per visit rate and the all inclusive inpatient ancillary per diem rate. Both of these rates are paid under Part B of the Medicare Program. For a more detailed explanation see the Provider Reimbursement Manual 15-I, Chapter 22, §2208.

The Method E cost report filed by the IHS is a modified cost report that is applicable to AIR no charge structure hospitals. The modified cost report does not use all the worksheets of the regular hospital cost report form (Form CMS- 2552). The worksheets filed by IHS are worksheet S-Part I &II, S-2, S-3, A, A-6, A-8, A-8-1, B-Part I, B-Part III, and B-1. For more detailed information see Provider Reimbursement Manual 15-II, Chapter 36.


Method E Cost Reports for Indian Health Services (Rev. 1040, 09-11-06). (2015, June 25). Find-A-Code Articles. Retrieved from

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