Blog, Reimbursement

Anatomy of a Cost Report

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Just as with a personal tax return, a cost report is comprised of groups of schedules and worksheets, most of which are designated by a letter prefix.

 

 

 

The major worksheets and their purposes are listed below.

Worksheet Description Purpose/Goal
S Series Statistical data To properly report statistics related to payer
A Series Proper classification of expenses by cost center To report allowable Medicare costs by cost center or department
B Series Matching of costs to revenue by utilization of a step-down approach Allocation of overhead costs
C Series Matching of cost to revenue – gross revenue by cost center or department Calculation of cost-to-charge ratios
D Series Calculation of Medicare share of hospital cost Determine a hospital’s portion of Medicare cost
E Series Calculation of Medicare settlement Determine amount owed by or owed to the Medicare program
G Series Hospitals Financial Statements Report the financial statements into the cost report software

There may be other worksheets that a hospital is required to submit due to the type of services provided. For example, providers that offer renal services will have to complete the I series worksheets, and those that offer provider-based services for Hospice and Home Health will need to submit the H and J series worksheets, respectively.

To learn how an independent cost report review can help you identify revenue opportunities and maintain compliance, download The Value of an Independent Cost Report Review.

 

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