Admin & Finance - Section 6: Cost Reporting Flashcards
True or False:
A cost report is required because Medicare will cut off payments to the clinic for an unfiled cost report
True
True or False:
A cost report is required because Medicare will cut off payments to the clinic for an unfiled cost report, but thy will not request all payments made to the provider be repaid to the program
False; Medicare will cut off payments to the clinic for an unfiled cost report and will ultimately request all payments made to the provider be repaid to the program.
Cost reports are due ____ calendar months from the clinic’s year end.
5 calendar months
Cost reports are due 5 calendar month for the clinic’s ____ ____
Year end
How must cost reports be submitted?
In electronic format (ECR) file on CMS approved vendor software via mailed CD or electronically through CMS portal
If a cost report is filed via CD, what must also be submitted?
A signed hard copy and an electronic “fingerprint” matching the electronic cost report
RHC rate is synonomous with what?
RHC cost per visit
How do you calculate the RHC cost per visit?
Allowable RHC costs / RHC visits
Allowable RHC costs / RHC visits = ____ ____
RHC cost per visit or RHC rate
True or False:
The RHC rate cannot exceed the maximum allowable reimbursement rate for the current period
True
True or False:
Independent RHCs or clinics attached to a hospital with greater than 100 beds have a capped RHC rate
False; 50 beds
True or False:
The cost report is where you get paid for pneumococcal and influenza vaccine costs and Medicare bad debt
True
The cost report determines future interim ____ rates
Payment
What does the cost report reconcile?
Medicare’s payment method to actual cost per visit
What is reported on Worksheet S?
Statistics
Worksheet S is for ____
Worksheet S-8 is for ____
S - independent
S-8 - provider based
What 3 statistics should be reported on Worksheet S?
Facility name, entity status, hours of operation
Clinic hours of operation should reflect what?
The hours practitioners are available to see patients
True or False:
Clinic hours should be broken down between hours operating as RHC and non-RHC
True
What format should clinic hours of operation be reported in?
Military
If filing for no utilization on Worksheet S, what do you put on line 4?
N
If filing a low utilization on Worksheet S, what do you put on the cost report?
L
Low utilization on the cost report is normally for payments made by the program for less than $____.
$50,000
Worksheet S-2 is for ____ RHCs
Independent
What does Worksheet S-2 replace?
CMS 339 questionnaire for independent RHCs
Worksheet S-3 is for ____ RHCs
Independent
What 2 things do visits need to be broken down by within Worksheet S-3?
Visit type and program/payer
True or False:
When breaking down visits by program/payer type for Worksheet S-3, you should include regular Medicare and Medicare Advantage
False; do not include Medicare Advantage
What is reported with Worksheet A?
Expenses
Worksheet ____ reports expenses for independent RHCs and Worksheet ____ reports expenses for provider based RHCs
A, M-1
What expense reporting documents should be used with Worksheet A, M-1?
Balance sheet, P&L, trial balance
Financial statements must match the ____ reporting period
Cost
What is the most frequent cost reporting period? What do other clinics sometimes use?
1/1/xx - 12/31/xx
7/1/xx - 6/30/xx
For new clinics, financial statements must reflect costs for what time period?
From the date of the clinic’s certification to the end of their first fiscal year
All costs from the financial statements must be reflected in columns ____ and ____ of Worksheet A for independent and Worksheet M-1 for provider based
1 and 2
Expenses should be ____ enough to properly classify within cost report categories (i.e., supplies should be broken up into medical supplies, office supplies, etc.)
Detailed
Miscellaneous/non-patient care revenue must be reviewed for possible ____
Offsets
Non-allowable expenses must be reviewed for ____ or classification in a non-reimbursable cost center
Offset
What are the 3 cost report categories?
Healthcare costs, overhead, non-RHC costs
Compensation for providers, nurses, and other healthcare staff/compensation for physician supervision would be classified in which cost report category?
Healthcare costs
Cost of services and supplies incident to services of physicians (including drugs and biologicals incident to RHC service) would be classified in which cost report category?
Healthcare costs
Cost related to the maintenance of licenses and malpractice insurance for medical professionals would be classified in which cost report category?
Healthcare costs
Malpractice insurance (premium cannot exceed amount of aggregate coverage), depreciation, and transportation of healthcare personnel between clinics or other healthcare locations only would be classified in which cost report category?
Healthcare costs
True or False:
A car paid for by the clinic and provided to a doctor for personal use qualifies as a healthcare cost
False
How is overhead allocated?
On ratio of healthcare costs to non-RHC costs
What are the 2 types of overhead?
Facility and administrative
Rent, insurance, interest on morgage or loans, other building expenses are examples of what type of overhead?
Facility
Office salaries, office supplies, legal/account, contract labor (i.e., housekeeping) are examples of what type of overhead?
Administrative
The RHC rate is calculated by dividing RHC costs by RHC visits. Anything paid outside of this rate will be put where?
In non-RHC costs
What Medicare Part is lab, x-ray, and technical components billed to for independent RHCs?
Medicare Part B
For provider based RHCs, lab, x-ray, and technical components are billed as an ____ service under the parent hospital’s Medicare number
Outpatient
True or False:
Dental, physical, and retail pharmacy are paid through the RHC rate
False; these items and services are not covered by the program
True or False:
CCM and telemedicine services are paid through the all-inclusive rate
False; CCM and telemedicine services are paid outside of the all-inclusive rate
True or False:
Membership costs that are for professional, technical, or buisness-related organizations are allowable
True
True or False:
Social and fraternal memberships are allowable
False; not allowable
True or False:
Research costs are not allowable
True
True or False:
Translation service costs are not allowable
False; are allowable
What is the general rule of thumb in relation to advertising costs?
If it helps patients find you or if it helps you recruit staff, those are allowable. If you advertise to increase patient loads, it is not allowable.
Is staff recruitment advertising an allowable cost?
Yes
Is yellow pages advertising an allowable cost?
Yes
Is advertising to increase patient volume an allowable cost?
No
Is fundraising advertising an allowable cost?
No
Are taxes levied by state and local governments an allowable cost?
Yes, if exemption is not allowed
Are fines and penalties an allowable cost?
No
Is the professional privilege tax an allowable cost?
Yes
Is income tax an allowable cost?
No
Interest expense has to be ____ and ____ interest on current capital indebtedness to be an allowable cost
Necessary and proper
Cost incurred for the use of borrowed funds
Interest
____ interest is incurred on a loan made to satisfy a financial need of a provider
Necessary
For interest to be considered necessary, it must be incurrent on a loan for purpose reasonably related to ____ care
Patient