Community Mental Health Center (CMHC) Cost Report — CMS-2088-17

By costreporting.aiPublished May 26, 2026

The Community Mental Health Center cost report is the annual Medicare filing every Medicare-certified CMHC that furnishes Partial Hospitalization Program (PHP) services submits to its MAC on Form CMS-2088-17, reconciling the center's allowable cost of treating Medicare beneficiaries against the OPPS PHP per-diem interim payments received during its fiscal year (42 CFR § 413.20). The PHP conditions of payment live at 42 CFR § 410.43.

What the CMS-2088-17 covers

The CMS-2088-17 walks the center's finances from raw trial balance to Medicare settlement. It captures direct cost by cost center (PHP, intensive outpatient, other outpatient services), allocates overhead across patient-care cost centers using step-down apportionment per PRM Pub. 15-1 Chapter 23, and documents the cost basis behind the OPPS PHP per-diem APC rate. Because PHP is paid prospectively, the cost report no longer drives per-diem rate-setting at the provider level but still settles bad-debt reimbursement, Medicare credit balances, and provides the cost data CMS uses for the annual OPPS rate recalibration.

CMHC support: pilot status + roadmap

costreporting.ai currently supports HHA (CMS-1728-20) and Hospice (CMS-1984-14) for the November 2026 pilot cohort. We're building the platform deliberately one form at a time — the deterministic engine, audit-trail, and cost-finding methodology must be exactly right for each form's worksheet structure before we add the next. CMHC (CMS-2088-17) is on the post-pilot roadmap. Join the waitlist below if you'd like notification when CMHC support ships.

The 42 CFR § 413.24 cost-finding standard applies regardless of provider type, so the architectural principle (AI classifies, determinism calculates, every customer-visible number traces to an audit-trail entry) carries forward when CMHC support lands. Whether you use a CPA firm, a billing agency, or an independent consultant for filing today, the documentation standard is the same, and your authorized representative signs the cost report regardless of preparer.

Common questions

What form is the CMHC cost report filed on?

Medicare-certified Community Mental Health Centers that participate in Medicare for Partial Hospitalization Program (PHP) services file Form CMS-2088-17. A CMHC must be Medicare-certified and provide PHP services per 42 CFR § 410.43 to file this form.

When is the CMHC cost report due?

Five months after the end of the center's fiscal year, per 42 CFR § 413.24(f)(2). The MAC may grant a limited extension only for good cause beyond the provider's control. The deadline is the same five-month rule that applies to other Medicare cost-report filers.

What does the CMS-2088-17 calculate?

The CMS-2088-17 captures the center's trial balance, allocates direct and indirect cost across cost centers (PHP, intensive outpatient, other outpatient services), and reconciles allowable cost against the PHP per-diem payments received during the year. PHP services are paid under the Outpatient Prospective Payment System (OPPS) per-diem rate for CMHCs; the cost report documents the center's cost basis and supports bad-debt reimbursement and Medicare credit balance reporting.

How is CMHC PHP payment determined?

PHP services furnished by CMHCs are paid under OPPS using the CMHC PHP per-diem APC rate set by CMS in the annual OPPS rule. The per-diem covers all PHP services furnished on a given day. The CMHC must meet the PHP conditions of payment at 42 CFR § 410.43, including the requirement that a patient need a minimum of 20 hours per week of therapeutic services and that PHP substitute for inpatient psychiatric hospitalization.

Does costreporting.ai support CMHC cost reports today?

Not yet. The pilot product currently supports HHA (CMS-1728-20) and Hospice (CMS-1984-14) for the November 2026 cohort. CMHC support is on the roadmap for the post-pilot release. If you operate a Medicare-certified CMHC and want to be notified when CMS-2088-17 support ships, join the waitlist below.