Which type of hospital can receive waivers from CMS, making it excluded from the inpatient prospective payment system?

The correct choice indicates that a cancer hospital can receive waivers from CMS, which excludes it from the inpatient prospective payment system (IPPS). This is significant because certain facilities, like cancer hospitals, provide specialized services that are not well-suited for the standard payment methods employed by the IPPS.

Cancer hospitals often treat patients with complex and intensive needs, requiring particular resources and specialized approaches that differ from those typically utilized by general acute care hospitals. Because of these unique challenges, CMS recognizes the necessity for different reimbursement methodologies to ensure that these hospitals can adequately meet the high standards of care required for cancer treatment.

Long-term care hospitals, rehabilitation hospitals, and psychiatric hospitals also have their own payment systems or exceptions, but the specific allowance for cancer hospitals underscores the importance of tailored reimbursement approaches to better address the needs of specialized care. In this context, it is crucial to understand the unique financial frameworks that help support facilities specializing in complex and chronic conditions like cancer.