How are Hospice Services Paid For?

How are hospice services paid for? This question seems like it should have a very concise answer; but in reality, it is so complex.  Like many hospices, Hospice of the Red River Valley is Medicare-certified. We are also licensed in both Minnesota and North Dakota, which means we are regulated by federal and two state laws.

For patients who have Medicare Part A, hospice is reimbursed at a per diem (daily) rate that is determined by where the patient resides. These rates for each of the four levels of care are regulated by Medicare and paid for through the Medicare Hospice Benefit. The four levels of care are routine home care, continuous (concentrated) home care, general inpatient and inpatient respite. Medicare has regulations that determine the level of care required. Medicare-certified hospices accept the Medicare payment and there is no charge to the patient.

Private insurance companies generally follow the Medicare guidelines and reimburse at per diem rates also. The dollar amount per day varies per insurance plan. We work with each insurance company individually to determine what services we may provide and what their reimbursement will be.  Each insurance plan has a co-insurance and a deductible that is the patient’s responsibility.

Medicaid (medical assistance) in both Minnesota and North Dakota follow the Medicare guidelines and per diem reimbursement for the four levels of care, and there is no charge to the patient. The Veteran’s Administration also allows for per diem hospice services.

At Hospice of the Red River Valley, patients who have no insurance coverage are provided the same services as the per diem arrangements. We are required to send a statement to the patient, and they may pay what ever amount they are able to pay. Thus, hospice relies on gifts and donations to cover services and costs that have no reimbursement.

Contact us today for more information about hospice services.

About Hospice of the Red River Valley
In 1981, Hospice of the Red River Valley was founded on the belief that everyone deserves access to high-quality end-of-life care. We fulfill our nonprofit mission by providing medical, emotional, personal and spiritual care, as well as grief support to our patients, their families and caregivers during a tender time in life. Our staff helps those we serve experience more meaningful moments through exceptional hospice care, 24 hours a day, 365 days a year, wherever a patient calls home. The organization serves more than 40,000 square miles in North Dakota and Minnesota, including in and around Bismarck, Detroit Lakes, Devils Lake, Fargo, Fergus Falls, Grand Forks, Lisbon, Thief River Falls, Valley City and many more communities. Hospice of the Red River Valley offers round-the-clock availability via phone, prompt response times and same-day admissions, including evenings, weekends and holidays. Contact us anytime at 800-237-4629 or


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