Blog, Reimbursement

Anatomy of a Cost Report

besler insights blog corner graphic

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.


SUBSCRIBE for Weekly Insider Updates

  • Podcast Alerts
  • Healthcare Finance News
  • Upcoming Webinars

By submitting your email address, you are agreeing to receive email communications from BESLER.

BESLER respects your privacy and will never sell or distribute your contact information as detailed in our Privacy Policy.


Partner with BESLER for Proven Solutions.