Timely Submission of Medicaid Cost Reports - Payment Suspension

Dear Providers,

Federally Qualified Health Centers (FHC’s) and Rural Health Clinics (RHC’s) providers are required to submit a Medicaid Cost Report in the appropriate CHAMPS sub-system effective 07/01/2025.

• If a clinic fails to submit a complete and acceptable Medicaid Cost Report via the MDHHS Facility Settlement system on time and has not been granted an extension of the time limit by MDHHS, a notice of delinquency is issued.
• If the Medicaid Cost Report is not submitted and accepted within 30 calendar days from the date of the notice of delinquency, the clinic’s Fee-for-Service (FFS) payments and gross adjustment payments are suspended until the Medicaid Cost Report is received and accepted by MDHHS HCRD in the system.
• Payments withheld due to late submission are paid upon acceptance of the Medicaid Cost Report. Managed care encounters are not subject to payment suspension.