Assessing the cost-effectiveness of provider-based status.

Clinics with provider-based status often receive greater Medicare payments. Coinsurance costs are higher with provider-based status. Operational changes may be necessary to satisfy provider-based status requirements. Hospitals should identify potential payment increases and associated costs to determine whether provider-based status is cost-effective. If provider-based status is desirable, hospitals should make sure the government's guidelines and regulatory deadlines are met.