CMS has made several changes to the Medicare cost report through the issuance of 2552-10. One particular worksheet that dramatically changed was worksheet S-10. This worksheet will now be required and be an auditable component of the Medicare cost report for those fiscal years ending after May of 2011.
There are 3 major components of Worksheet S-10. These components include uncompensated care, charity care and bad debt. It is important for you to begin reviewing the requirements of worksheet S-10. You need to make sure that your existing processes and systems are adequate to capture all the necessary data under this new format. The data should be or can be automated to allow for the aggregation of this data into a system that can produce this new Medicare cost reporting requirement in an efficient and comprehensive manner.
The calculation of your hospital’s DSH payments will change beginning in FFYE 2014. Uncompensated care will be an important component of this calculation. It is one of the controllable variables in future DSH calculations.
CMS has not yet defined uncompensated care in the federal regulations. But it is logical to assume that with all the changes brought on by 2552-10 that worksheet S-10 will be used by CMS to gather this important information to determine future Medicare DSH payments. CMS will almost certainly use some blended ratio of the FFYE 2011-2013 Worksheet S-10 filings to make adjustments to the FFYE 2014 Medicare DSH calculations.
For more information please contact Jeff Presser at firstname.lastname@example.org