Cost Report Preparation and Documentation 101

Transcription

1 Cost Report Preparation and Documentation 101 A How-To Guide to Workpaper and Supporting Documentation Preparation

2 Agenda Medicare Reimbursement Methodologies What is a Cost Report and Why is it Important Filing Guidelines Basic Flow of a Cost Report Most Common Data Used in a Cost Report Basic Data Rules and Reconciliations

3 Agenda Review of Cost Report Pages, Their Data and the Workpapers Needed to Support Them: WS A (Summary Trial Balance of Expenses) WS A-6 (Reclassifications) WS A-8 (Adjustments) WS B-1 (Statistical Allocation of Overhead Expenses) WS C (Patient Treatment Revenues Total Charges) Settlement (Charges and Data) WS SS S-2 (Provider Questionnaire) WS S-3 Part 1(Census Data), WS S-3 Part 2 (Wage Index) WS S-10 (Uncompensated Care)

4 Agenda Documentation is the Key! Electronic vs. Manual Data Manipulation and Analysis Special Issues Critical Access Home Office Cost Statement Skilled Nursing Cost Report Home Health Cost Report Community Mental Health Center Cost Report

5 Agenda Specialty Pages on the Cost Report WS A-8-1 (Related Parties) WS A-8-2 (Physician i Compensation) WS H Series (Home Health Agencies) WS I Series (Renal Dialysis) WS M Series (RHC, FQHC) WS J Series (CMHC) Wrap Up

6 Medicare Reimbursement Methodologies Medicare ProgramPartAPart Medicare ProgramPartBPart IP Services Hospital Based Outpatient Services Clinic Services Physician Services IP Ancillary Services Outpatient Services Onsite/Offsite Clinics Clinics and MD Offices Medicare Part A intermediary Medicare Cost Reports (UB 92 Bills) Medicare Part B Carrier CMS 1500 Bills Cost Report Part A (IP) Cost Report Part B (OP)

7 Medicare Reimbursement Methodologies Reimbursement Mechanisms for Hospital Units/Entities IP Acute Care DRG (Diagnostic Related Groups) Hospital Based Outpatient Services APC (Ambulatory Payment Categories) Hospital Based Clinics APC or Cost Reimbursement (Based on Designation) Skilled Nursing Facility/Unit RUGS (Resource Utilization Groups) IP Rehab Services IRFPPS (IP Rehab Facility Prospective Payment System) IP Psychiatric Services PsychPPS (Psychiatric Prospective Payment System) Home Health Agency HHAPPS (Home Health Prospective Payment System)

8 Medicare Reimbursement Methodologies Reimbursement Mechanisms for Special Services IME/GME (Medical Education) FTEs Disproportionate Share Hospitals (DSH) Indigency Percentage Medicare Bad Debs Portion of the Un-paid Coinsurance and Deductibles Organ Acquisition Cost Reimbursement

9 What is a Cost Report and why is it important? The cost report is a financial report that identifies the cost and charges related to healthcare treatment activities Cost Reports Impact Reimbursement! Today Future Reimbursement Congress/CMS rate setting and policy decisions are based on data in the cost reports and MedPar.

10 Filing Guidelines Medicare cost reports are due within 150 Days from the FYE of the facility (Post Marked) Electronic cost report AND supporting documentation are submitted State reports (Medicaid) vary from state to state, but generally due at same time as Medicare report Variations can be significant

11 vs The new hospital cost report form must be used for all cost reports with FYE of and later. The class will focus on the use of the Changes between and Grouping of Departments on WS A is the main change Settlement Pages (E series) were de cluttered Minor Changes on various pages (S-2, S-3, etc.)

12 Basic Flow of a Cost Report WS A Series general ledger or trial balance information by functional department WS B Series allocation of overhead costs to patient treatment and other operating departments WS C Series revenue by patient treatment department to determine the cost/charge ratio (for every dollar billed how much did it cost to provide the service to the patient) WS D Series determine the cost of treating the Medicare/MediCaid patients by reimbursement mechanism WS E Series determine the due to/from Medicare Program based on the reimbursement mechanism/cost/interim payments WS G Series Financial Statements WS S Series statistical ti ti information and wage index WS H Series Home Health Services WS J, K, M Series Clinics and Freestanding components WS I End Stage Renal Dialysis i (ESRD)

13 Most Commonly Used Data in a Cost Report General Ledger (Summary Trial Balance) Payroll Register Chargemaster with Volumes (Volume Report) Medicare Charges by Department and Revenue Code (Revenue and Usage) Provider Statistical Report (PSR) Patient Census (Days and Discharges) Allocation Statistics Specific Purpose Data

14 Basic Data Rules Every data file has its unique issues and reasons for being used in the cost report. As a universal rule, the general ledger is the Parent data source and all others should agree to or relate to the general ledger. Accounts/Departments/Accounting Units/Cost Centers/etc. Cost Report Line Number Groupings Sub-Accounts/Object Codes/etc. Raw data vs. Processed data Know Your Data!

15 The General Ledger The General Ledger is the most important data that is included in the cost report. Structure of a General Ledger Account vs. Sub-Account Ranges of data Mix and Match data How does the GL break down? Assets and Liabilities Revenues Expenses Other Operating and Non-Operating Revenue/Expenses

16 General Ledger Show a General Ledger in Excel and review Account Structure SbA Sub-Account Structuret Cut up GL to show Assets and Liabilities Revenues Expenses Other Operating and Non-Operating Revenue/Expenses

17 Reconciliations Reconciliations serve two purposes: 1. Identify that all of the revenues/expenses (data) have been accounted for to an outside source. General Ledger to Income Statement Cost Report to Income Statement t t Other Operating/Non-Operating Revenue/Expense 2. Validate that two different data sources generate the same data in different formats and can be used as surrogates. General Ledger Revenues vs. Volume Report General Ledger Salaries vs. Payroll Report General Ledger 3 rd Party Revenues to Revenue & Usage

18 General Ledger to Income Statement

19 Cost Report to Income Statement Reconciliation

20 Other Operating/Non-Operating p grev/exp Reconciliation

21 General Ledger vs. Volume Report Comparison

22 WS A (Expenses by Department) The purpose of WS A is to identify all Direct Expenses (Salary vs. Other) incurred at the facility by department t into cost report lines ( Cost Centers ). Criteria for Independent Cost Centers Standard (i.e., preprinted) CMS line numbers and cost center descriptions cannot be changed. If you need to use additional or different cost center descriptions, add additional lines to the cost report. Where an added cost center description bears a logical relationship to a standard line description, the added label must be inserted immediately after the related standard line. If additional lines are added for general service cost centers, add corresponding columns for cost finding.

23 4090 (Cont.) FORM CMS RECLASSIFICATION AND ADJUSTMENT OF TRIAL BALANCE OF EXPENSES P ROVIDER NO.: P ERIOD: WORKSHEET A FROM TO RECLASSIFIED NET EXPENSES COST CENTER DESCRIPTIONS TOTAL RECLASSIFI TRIAL BALANCE FOR ALLOCATION (omit cents) SALARIES OTHER (col. 1 + col. 2) CATIONS (col. 3 ± col. 4) ADJUSTMENTS (col. 5 ± col. 6) GENERAL SERVICE COST CENTERS Capital Related Costs-Buildings and Fixtures Capital Related Costs-Movable Equipment Other Capital Related Costs Employee Benefits Administrative and General Maintenance and Repairs Operation of Plant Laundry and Linen Service Housekeeping Dietary Cafeteria Maintenance of Personnel Nursing Administration Central Services and Supply Pharmacy Medical Records & Medical Records Library Social Service Other General Service (specify) Nonphysician Anesthetists Nursing School Intern & Res. Service-Salary & Fringes (Approved) Intern & Res. Other Program Costs (Approved) Paramedical Ed. Program (specify) 23 INPATIENT ROUTINE SERVICE COST CENTERS Adults and Pediatrics (General Routine Care) Intensive Care Unit Coronary Care Unit Burn Intensive Care Unit Surgical Intensive Care Unit Other Special Care (specify) Subprovider - IPF Subprovider - IRF Subprovider (specify) Nursery Skilled Nursing Facility Nursing Facility Other Long Term Care 46 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4013) Rev. 1

24 12-10 FORM CMS (Cont.) RECLASSIFICATION AND ADJUSTMENT OF TRIAL BALANCE OF EXPENSES PROVIDER NO.: PERIOD: WORKSHEET A FROM TO RECLASSIFIED NET EXPENSES COST CENTER DESCRIPTIONS TOTAL RECLASSIFI TRIAL BALANCE FOR ALLOCATION (omit cents) SALARIES OTHER (col. 1 + col. 2) CATIONS (col. 3 ± col. 4) ADJUSTMENTS (col. 5 ± col. 6) ANCILLARY SERVICE COST CENTERS Operating Room Recovery Room Labor Room and Delivery Room Anesthesiology Radiology-Diagnostic Radiology-Therapeutic Radioisotope Computed Tomography (CT) Scan Magnetic Resonance Imaging (MRI) Cardiac Catheterization Laboratory PBP Clinical Laboratory Services-Program Only Whole Blood & Packed Red Blood Cells Blood Storing, Processing, & Trans Intravenous Therapy Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology Electrocardiology Electroencephalography Medical Supplies Charged to Patients Implantable Devices Charged to Patients Drugs Charged to Patients Renal Dialysis ASC (Non-Distinct Part) Other Ancillary (specify) 76 OUTPATIENT SERVICE COST CENTERS Rural Health Clinic (RHC) Federally Qualified Health Center (FQHC) Clinic Emergency Observation Beds Other Outpatient Service (specify) 93 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION 4013) Rev. 1

25 12-10 FORM CMS (Cont.) RECLASSIFICATION AND ADJUSTMENT OF TRIAL BALANCE OF EXPENSES P ROVIDER NO.: P ERIOD: WORKSHEET A FROM TO RECLASSIFIED NET EXPENSES COST CENTER DESCRIPTIONS TOTAL RECLASSIFI TRIAL BALANCE FOR ALLOCATION (omit cents) SALARIES OTHER (col. 1 + col. 2) CATIONS (col. 3 ± col. 4) ADJUSTMENTS (col. 5 ± col. 6) OTHER REIMBURSABLE COST CENTERS Home Program Dialysis Ambulance Services Durable Medical Equipment-Rented Durable Medical Equipment-Sold Other Reimbursable (specify) Outpatient Rehabilitation Provider (specify) Intern-Resident Service (not appvd. tchng. prgm.) Home Health Agency 101 SPECIAL PURPOSE COST CENTERS Kidney Acquisition Heart Acquisition Liver Acquisition Lung Acquisition Pancreas Acquisition Intestinal Acquisition Islet Acquisition Other Organ Acquisition iti (specify) Interest Expense Utilization Review-SNF Ambulatory Surgical Center (Distinct Part) Hospice Other Special Purpose (specify) SUBTOTALS (sum of lines 1-117) 118 NONREIMBURSABLE COST CENTERS Gift, Flower, Coffee Shop, & Canteen Research Physicians' Private Offices Nonpaid Workers Other Nonreimbursable (specify) TOTAL (sum of lines ) FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4013) Rev. 1

26 WS A Cost report line numbers should be grouped based on the account: Overhead Departments (1-23) Routine Services (30-46) Ancillary Services (50-76) Outpatient Services (88-93) Other Reimbursable Services (94-101) Special Purpose Cost Centers ( ) Non-Reimbursable Cost Centers ( ) Total (200)

27 WS A Salary vs. Other Expenses should be determined based on the Sub-Account. How should the following be treated? t Contract Labor? Bonuses? Stand-By/On Call? Training/Orientation? Non-Operating Expense (i.e. Joint Ventures, Minority Interests)

28 WS A Steps to process WS A Data: 1. Main Data is the General Ledger 2. Know Your Data 1. Review Accounts 2. Review Sub-Accounts 3. New Accounts and Sub-Accounts 3. Groupings 4. Salary vs. Other Expense Split 5. Sort and Subtotal

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33 WS A-6 (Reclassifications) The purpose of the WS A-6 Reclassifications is to move expenses from where they were booked per the FASB Accounting Rules to where Medicare requires these expenses to be. WS A-6 Reclassifications need to separately identify Salary Expenses vs. Other Expenses.

34 WS A-6 Common Examples of WS A-6 Reclassifications: 1. Medical Supplies (High Cost med Supplies) Charged to Patients t 2. Drugs Charged to Patients 3. Equipment Depreciation Expense 4. Employee Benefits Expenses 5. Cafeteria Expenses 6. OB, Nursery and L&D Service Expenses

35 12-10 FORM CMS (Cont.) RECLASSIFICATIONS PROVIDER NO.: PERIOD: WORKSHEET A-6 FROM TO INCREASES DECREASES Wkst. CODE A-7 EXPLANATION OF RECLASSIFICATION(S) (1) COST CENTER LINE # SALARY OTHER COST CENTER LINE # SALARY OTHER Ref Total reclassifications (sum of columns 4 and must equal sum of columns 8 and 9) (1) A letter (A, B, etc.) must be entered on each line to identify each reclassification entry. Transfer the amounts in columns 4, 5, 8, and 9 to Worksheet A, column 4, lines as appropriate. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4014) Rev

36 WS A-6 Steps to process WS A-6 Data: Identify the data to be reclassified General Ledger Statistics (Split and Complex Reclassifications) What is the basis for the reclassification? Whole Move (Simple Reclassification) Partial Move (Split Reclassification) Allocation Move (Complex Reclassification) Cost Center Assignment Workpapers should always show the increase as well as the decrease (No Assumptions)

37 WS A-6 Steps to Process WS A-6 Data: Supporting Analytical Workpapers Workpaper Referencing Sort and Subtotal WS A-6 Reclassification Alpha Code Assignment

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44 WS A-6 (impact on cost report) Are we done with WS A-6 Reclassifications? Matching Principle Pi Prior Reclass impact on Current Reclass WS S-3 Wage Index impact WS B-1 Statistics impact WS C Revenue impact Settlement Charges impact

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51 WS A-8 (Revenue/Expense Adjustments) WS A-8 adjustments allow the user to adjust the Expenses on WS A for differences between Financial Accounting and Medicare. Revenue Adjustments are where Other Operating/Non- Operating Revenue is offset against the associated Expenses Expense Adjustments are where the Expenses are treated differently between Financial Accounting and Medicare

52 12-10 FORM CMS (Cont.) ADJUSTMENTS TO EXPENSES PROVIDER NO.: PERIOD: WORKSHEET A-8 FROM TO EXPENSE CLASSIFICATION ON DESCRIPTION (1) WORKSHEET A TO/FROM WHICH THE AMOUNT IS TO BE ADJUSTED Wkst. A-7 BASIS/CODE (2) AMOUNT COST CENTER LINE # Ref Investment income - buildings and fixtures (chapter 2) Buildings and Fixtures Investment income - movable equipment (chapter 2) Movable Equipment Investment income - other (chapter 2) 3 4 Trade, quantity, and time discounts (chapter 8) 4 5 Refunds and rebates of expenses (chapter 8) 5 6 Rental of provider space by suppliers (chapter 8) 6 7 Telephone services (pay stations excluded) (chapter 21) 7 8 Television and radio service (chapter 21) 8 9 Parking lot (chapter 21) 9 10 Provider-based physician adjustment Worksheet A Sale of scrap, waste, etc. (chapter 23) Related organization transactions (chapter 10) Worksheet A Laundry and linen service Cafeteria-employees and guests Rental of quarters to employee and others Sale of medical and surgical 16 supplies to other than patients 17 Sale of drugs to other than patients Sale of medical records and abstracts Nursing school (tuition, fees, books, etc.) Vending machines Income from imposition of interest, 21 finance or penalty charges (chapter 21) 22 Interest expense on Medicare overpayments and 22 borrowings to repay Medicare overpayments 23 Adjustment for respiratory therapy 23 costs in excess of limitation (chapter 14) Worksheet A-8-3 Respiratory Therapy Adjustment for physical therapy costs 24 in excess of limitation (chapter 14) Worksheet A-8-3 Physical Therapy Utilization review - physicians' compensation (chapter 21) Utilization Review - SNF Depreciation - buildings and fixtures Buildings and Fixtures Depreciation - movable equipment Movable Equipment Non-physician Anesthetist Nonphysician Anesthetist Physicians' assistant Adjustment for occupational therapy costs 30 in excess of limitation (chapter 14) Worksheet A-8-3 Occupational Therapy Adjustment for speech pathology costs 31 in excess of limitation (chapter 14) Worksheet A-8-3 Speech Pathology CAH HIT Adjustment for Depreciation 32 and dinterest t 33 Other adjustments (specify) (3) TOTAL (sum of lines 1 thru 49) 50 (Transfer to Worksheet A, column 6, line 200) FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4016) Rev

53 WS A-8 Common Examples of WS A-8 Adjustments: 1. Bad Debt Expense (Simple Adjustment) 2. Misc Revenue ( Primarily il Simple Adjustment) t) 3. Interest Income/Expense (Partial Adjustment) 4. Grant Revenues (No Offset) 5. Cafeteria Revenue (Move and Offset)

54 WS A-8 Steps to process WS A-6 Data: Identify the data to be Adjusted General Ledger Statistics (Partial Adjustments) What is the basis for the Adjustment? Whole (Simple) Partial No Offset Matching Principle (Cost Center Assignment) Sort and Subtotal

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57 Purpose: Sources: To identify and offset the Interest Income against the associated expenses on the Medicare cost report General LedgerInterste Income and Expense Accounts Related dparty transaction analysis (WP A 8 1_2) 12) Comments: Interest Income is to offset to the extent of the Related Expenses. Account Description SubAccount Description Interest Income Net Interest Exp (A) Max InterestRev Offset NON ALLOCABLE OVERHEAD INTEREST INC PHYSICANS\' NOTES (42,379.93) NON ALLOCABLE OVERHEAD INTEREST INC OTHER (4,834.15) (47,214.08) 28, , (B) Account Description SubAccount Description Interest Exp Related Party Adjustment (C ) Net Interest Exp ADMINISTRATION INT CONTRA CAP INT 1998 BONDS (1,270,121.20) (1,270,121.20) NON ALLOCABLE OVERHEAD I/C EXP INT L/T NOTES 5,786, (4,525,798.65) 1,260, NON ALLOCABLE OVERHEAD I/C EXP INT L/T NOTES 41, , NON ALLOCABLE OVERHEAD INT CAP LEASE 1 27, , NON ALLOCABLE OVERHEAD INT CAP LEASE NUTRITIONAL SVCS INT CONTRA CAP INT 1999 BONDS (31,788.97) (31,788.97) Interest Expense 4,554, (4,525,798.65) 28, (A) WS A 8 Line Cost Center Description Amount 39 6 Interest income Offset 28, (B) Audit Tags (A) This amount represents the Net Interest Expense (Max Offset of interest Income) (B) Interest Income exceeds the ralated expenses Net Interest Income Offset (C ) Cost of related party transaction adjustment based on WP A 8 1_2

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60 WS A-8 Do WS A-8 Adjustments impact other cost report pages?

61 WS B-1 (Statistical Allocations) WS B-1 is where the Overhead Cost Centers are Allocated to the rest of the Hospital Departments based on their individual Statistics. Single Allocation Methodology CFR (d)(1) Multiple l Allocation Methodology CFR413.24(d)(2)(ii) Simplified Cost Allocation

62 12-10 FORM CMS (Cont.) COST ALLOCATION STATISTICAL BASIS PROVIDER NO.: PERIOD: WORKSHEET B-1 FROM TO CAPITALRELATED COST ADMINIS MAIN BLDGS. & MOVABLE EMPLOYEE TRATIVE & TENANCE & OPERATION FIXTURES EQUIPMENT BENEFITS GENERAL REPAIRS OF PLANT CENTER DESCRIPTIONS (SQUARE (DOLLAR (GROSS RECONCIL (ACCUM. (SQUARE (SQUARE FEET) VALUE) SALARIES) IATION COST) FEET) FEET) A GENERAL SERVICE COST CENTERS 1 Capital Related Costs-Buildings and Fixtures 1 2 Capital Related Costs-Movable Equipment 2 4 Employee Benefits 4 5 Administrative and General 5 6 Maintenance and Repairs 6 7 Operation of Plant 7 8 Laundry and Linen Service 8 9 Housekeeping 9 10 Dietary Cafeteria Maintenance of Personnel Nursing Administration Central Services and Supply Pharmacy Medical Records & Medical Records Library Social Service Other General Service (specify) Nonphysician Anesthetists Nursing School Intern & Res. Service-Salary & Fringes (Approved) Intern & Res. Other Program Costs (Approved) Paramedical Education Program (specify) 23 INPATIENT ROUTINE SERVICE COST CENTERS 30 Adults and Pediatrics (General Routine Care) Intensive Care Unit Coronary Care Unit Burn Intensive Care Unit Surgical Intensive Care Unit Other Special Care Unit (specify) Subprovider IPF Subprovider IRF Subprovider (specify) Nursery Skilled Nursing Facility Nursing Facility Other Long Term Care 46 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4020) Rev

63 12-10 FORM CMS (Cont.) COST ALLOCATION STATISTICAL BASIS PROVIDER NO.: PERIOD: WORKSHEET B-1 FROM TO CAPITAL RELATED COST ADMINIS MAIN BLDGS. & MOVABLE EMPLOYEE TRATIVE & TENANCE & OPERATION FIXTURES EQUIPMENT BENEFITS GENERAL REPAIRS OF PLANT CENTER DESCRIPTIONS (SQUARE (DOLLAR (GROSS RECONCIL (ACCUM. (SQUARE (SQUARE FEET) VALUE) SALARIES) IATION COST) FEET) FEET) A ANCILLARY SERVICE COST CENTERS 50 Operating Room Recovery Room Labor Room and Delivery Room Anesthesiology Radiology-Diagnostic Radiology-Therapeutic Radioisotope Computed Tomography (CT) Scan Magnetic Resonance Imaging (MRI) Cardiac Catheterization Laboratory PBP Clinical Laboratory Services-Program Only Whole Blood & Packed Red Blood Cells Blood Storing, Processing, & Trans Intravenous Therapy Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology Electrocardiology Electroencephalography Medical Supplies Charged to Patients Implantable Devices Charged to Patients Drugs Charged to Patients Renal Dialysis ASC (Non-Distinct Part) Other Ancillary (specify) 76 OUTPATIENT SERVICE COST CENTERS 88 Rural Health Clinic (RHC) Federally Qualified Health Center (FQHC) Clinic Emergency Observation Beds Other Outpatient Service (specify) 93 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4020) Rev. 1

64 12-10 FORM CMS (Cont.) COST ALLOCATION STATISTICAL BASIS PROVIDER NO.: PERIOD: WORKSHEET B-1 FROM TO CAPITAL RELATED COST ADMINIS MAIN BLDGS. & MOVABLE EMPLOYEE TRATIVE & TENANCE & OPERATION FIXTURES EQUIPMENT BENEFITS GENERAL REPAIRS OF PLANT T CENTER DESCRIPTIONS (SQUARE (DOLLAR (GROSS RECONCIL (ACCUM. (SQUARE (SQUARE FEET) VALUE) SALARIES) IATION COST) FEET) FEET) A OTHER REIMBURSABLE COST CENTERS 94 Home Program Dialysis Ambulance Services Durable Medical Equipment-Rented Durable Medical Equipment-Sold Other Reimbursable (specify) Outpatient Rehabilitation Provider (specify) Intern-Resident Service (not appvd. tchng. prgm.) Home Health Agency 101 SPECIAL PURPOSE COST CENTERS 105 Kidney Acquisition Heart Acquisition Liver Acquisition Lung Acquisition Pancreas Acquisition Intestinal Acquisition Islet Acquisition Other Organ Acquisition (specify) Ambulatory Surgical Center (Distinct Part) Hospice Other Special Purpose (specify) SUBTOTALS (sum of lines 1-117) 118 NONREIMBURSABLE COST CENTERS 190 Gift, Flower, Coffee Shop, & Canteen Research Physicians' Private Offices Nonpaid Workers Other Nonreimbursable (specify) Cross foot adjustments Negative cost centers Cost to be allocated (per Worksheet B, Part I) Unit cost multiplier (Worksheet B, Part I) Cost to be allocated (per Worksheet B, Part II) Unit cost multiplier (Worksheet B, Part II) 205 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4020) Rev

65 WS B-1 The standard Statistics that CMS allows for each Cost Center are as Follows: Square Feet (CC# 1, 6, and 7) Direct Nursing us Hours ous(cc# 13) Dollar Value (CC# 2) Costed Requisitions (CC# 14 and 15) Gross Salaries (CC# 4) Time Spent (CC# 16 and 17) Accumulated Cost (CC# 5) Assigned Time (CC# 19-23) LBS of Laundry (CC# 8) Meals Served (CC # 9 and 10) Number Housed (CC# 12)

66 WS B-1 Steps to process WS B-1 Data: Identify the data to be used as Statistic General Ledger (Dollar Value, Gross Salaries, Costed Requisitions, etc.) Statistics (Various Data Sources) Calculated Values or imputed Values Cost Center Assignment Identification of Adjustments due to WS A-6 or WS A-8 Previously Allocated Cost Centers Sort and Subtotal Workpapers should always agree to the total Statistic that was used in the cost report

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78 WS C (Patient Treatment Revenues) WS C is used to identify the Total IP and OP Charges by Department for Patient Treatment activities. These charges are then compared to the expenses (after stepdown) in order to arrive at the Cost to Charge Ratio (CCR). The CCRs are how Medicare and Medicaid identify the cost of services based on the bills submitted.

79 12-10 FORM CMS (Cont.) COMPUTATION OF RATIO OF COSTS TO CHARGES PROVIDER NO.: PERIOD: WORKSHEET C FROM PART I TO Total Cost Costs Charges (from Wkst. Therapy RCE Total TEFRA PPS COST CENTER DESCRIPTIONS B, Part I, Limit Total Dis Total (column 6 Cost or Inpatient Inpatient col. 26) Adj. Costs allowance Costs Inpatient Outpatient + column 7) Other Ratio Ratio Ratio INPATIENT ROUTINE SERVICE COST CENTERS 30 Adults and Pediatrics (General Routine Care) It Intensive Care Unit Uit Coronary Care Unit Burn Intensive Care Unit Surgical Intensive Care Unit Other Special Care (specify) Subprovider IPF Subprovider IRF Subprovider (Specify) Nursery Skilled Nursing Facility Nursing Facility Other Long Term Care 46 ANCILLARY SERVICE COST CENTERS 50 Operating Room Recovery Room Labor Room and Delivery Room Anesthesiology Radiology-Diagnostic Radiology-Therapeutic Radioisotope Computed Tomography (CT) Scan Magnetic Resonance Imaging (MRI) Cardiac Catheterization Laboratory PBP Clinical Laboratory Services-Prgm. Only Whole Blood & Packed Red Blood Cells Blood Storing, Processing, & Trans Intravenous Therapy Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology 68 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTIONS 4023) Rev

80 4090 (Cont.) FORM CMS #REF! COMPUTATION OF RATIO OF COSTS TO CHARGES PROVIDER NO.: PERIOD: WORKSHEET C FROM PART I TO Total Cost Costs Charges (from Wkst. Therapy RCE Total TEFRA PPS COST CENTER DESCRIPTIONS B, Part I, Limit Total Dis Total (column 6 Cost or Inpatient Inpatient col. 26) Adj. Costs allowance Costs Inpatient Outpatient + column 7) Other Ratio Ratio Ratio OUTPATIENT SERVICE COST CENTERS 69 Electrocardiology Electroencephalography Medical Supplies Charged to Patients Implantable Devices Charged to Patients Drugs Charged to Patients Renal Dialysis ASC (Non-Distinct Part) Other Ancillary (specify) Rural Health Clinic (RHC) Federally Qualified Health Center (FQHC) Clinic Emergency Observation Beds (see instructions) Other Outpatient Service (specify) 93 OTHER REIMBURSABLE COST CENTERS 94 Home Program Dialysis Ambulance Services Durable Medical Equipment-Rented Durable Medical Equipment-Sold Other Reimbursable (specify) Outpatient Rehabilitation i Provider (specify) Intern-Resident Service (not appvd. tchng. prgm.) Home Health Agency 101 SPECIAL PURPOSE COST CENTERS 105 Kidney Acquisition Heart Acquisition Liver Acquisition Lung Acquisition Pancreas Acquisition Intestinal Acquisition Islet Acquisition Other Organ Acquisition (specify) Ambulatory Surgical Center (Distinct Part) Hospice Other Special Purpose (specify) Subtotal (sum of lines 30 thru 199) Less Observation Beds Total (line 200 minus line 201) 202 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTIONS 4023) Rev. 1

81 WS C Steps to process WS C Data: Identify the data to be used: General Ledger Volume Report (Revenue Reclasses and Adjustments) Cost Center Assignment Revenue Reclasses Medical Supplies Drugs Observation Etc.

82 WS C Steps to process WS C Data: Revenue Adjustments IP/OP charges in wrong category Epogene Etc. Identify and WS A-6 Impacts on Revenues Sort and Subtotal Workpapers should always reconcile back to the Original GL (CR to IS Recon) as well as agree to the WS C Values.

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86 Settlement Charges The Settlement Charges are the Medicare/Medicaid charges that have been accumulated from the Bills submitted and are sumaraized on the Provider Statistical Report (PSR). These charges are applied to the CCR (WS C) to calculate the cost of treating the Medicare/Medicaid patients. Charges on the PSR are identified by their 3(4) digit numeric revenue code.

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90 Settlement Charges Settlement Charges are obtained from the PSR. The PSR contains multiple report types. Listed below are the most common IP PSR Report Types: 110 I/P Part A 118 Inpatient - Part A Managed Care 119 I/P PPS Interim Bills 11A I/P Part A (MSP) 11R I/P Rehab 11U I/P Psych 120 Inpatient - Part B 122 I/P Part B Vaccines 125 I/P Part B - Fee Reimbursed 12P I/P Part B - OPPS

91 Settlement Charges Listed below are the most common OP PSR Report Types: 130 O/P All Other / Ambulance 132 O/P Part B Vaccines 135 O/P Fee Reimbursed 13A O/P All Other (MSP) 13P O/P OPPS 140 O/P All Other 145 O/P Other Mamography Fee Reimbursed 14A O/P Clinical Labs (MSP) 14P O/P Other OPPS

92 4090 (Cont.) FORM CMS INPATIENT ANCILLARY SERVICE PROVIDER NO.: PERIOD: WOR KS HEET D-3 COST APPORTIONMENT FROM C OM P ONENT NO.: TO Check [ ] Title V [ ] Hospital [ ] Subprovider (other) [ ] Swing-Bed SNF [ ] PPS applicable [ ] Title XVIII, Part A [] IPF [] SNF [] Swing-Bed NF [ ] TEFRA boxes: [ ] Title XIX [ ] IRF [ ] NF [ ] ICF/MR [ ] Other Ratio of Cost Inpatient Inpatient Program Costs COST CENTER DESCRIPTION to Charges Program Charges (col. 1 x col. 2) INPATIENT ROUTINE SERVICE COST CENTERS 30 Adults and Pediatrics (General Routine Care) Intensive Care Unit Coronary Care Unit Burn Intensive Care Unit Surgical Intensive Care Unit Other Special Care (specify) Subprovider IPF Subprovider IRF Subprovider (Specify) Nursery 43 ANCILLARY SERVICE COST CENTERS 50 Operating Room Recovery Room Labor Room and Delivery Room Anesthesiology Radiology Diagnostic g Radiology Therapeutic Radioisotope Computed Tomography (CT) Scan Magnetic Resonance Imaging (MRI) Cardiac Catheterization Laboratory PBP Clinical Laboratory Services Prgm. Only Whole Blood & Packed Red Blood Cells Blood Storing, Processing, & Trans Intravenous Therapy Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology Electrocardiology Electroencephalography Medical Supplies Charged to Patients Implantable Devices Charged to Patients Drugs Charged to Patients Renal Dialysis ASC (Non Distinct Part) Other Ancillary (specify) 76 OUTPATIENT SERVICE COST CENTERS 88 Rural Health Clinic (RHC) Federally Qualified Health Center (FQHC) Clinic Emergency Observation Beds (see instructions) Other Outpatient Service (specify) 93 OTHER REIMBURSABLE COST CENTERS 94 Home Program Dialysis Ambulance Services Durable Medical Equipment Rented Durable Medical Equipment Sold Other Reimbursable (specify) Total (sum of lines and 96 98) Less PBP Clinic Laboratory Services Program only charges (line 61) Net Charges (line 200 minus line 201) 202 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION 4027) Rev. 1

93 4090 (Cont.) FORM CMS APPORTIONMENT OF MEDICAL AND OTHER PROVIDER NO.: PERIOD: WORKSHEET D, HEALTH SERVICES COSTS FROM PART V COMPONENT NO.: TO Check [ ] Title V - O/P [ ] Hospital [ ] Subprovider (Other) [ ] Swing Bed SNF applicable [ ] Title XVIII, Part B []IPF []SNF []S Swing Bed dnf boxes: [ ] Title XIX - O/P [ ] IRF [ ] NF [ ] ICF/MR PART V - APPORTIONMENT OF MEDICAL AND OTHER HEALTH SERVICES COSTS Program Charges Program Cost Cost to Cost Reimbursed Cost Reimbursed Cost Cost Charge Services Services Not PPS Services Services Not Ratio from PPS Reimbursed Subject to Subject to Services Subject to Subject to Worksheet C, Services Ded. & Coins. Ded. & Coins. (see Ded. & Coins. Ded. & Coins. Part I, col. 9 (see instructions) (see instructions) (see instructions) instructions) (see instructions) (see instructions) Cost Center Description ANCILLARY SERVICECOSTCOST CENTERS 50 Operating Room Recovery Room Labor & Delivery Room Anesthesiology Radiology-Diagnostic Radiology-Therapeutic Radioisotope Computed Tomography (CT) Scan Magnetic Resonance Imaging (MRI) Cardiac Catheterization Laboratory PBP Clinic Laboratory Services-Prgm. Only Whole Blood & Packed Red Blood Cells Blood Storing, Processing, & Transfusing Intravenous Therapy Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology Electrocardiology Electroencephalography Medical Supplies Charged To Patients Implantable Devices Charged to Patients Drugs Charged to Patients Renal Dialysis ASC (Non-Distinct Part) Other Ancillary (specify) 76 OUTPATIENT SERVICE COST CENTERS 88 Rural Health Clinic (RHC) Federally Qualified Health Center (FQHC) Clinic Emergency Observation Bed Other Outpatient Service (specify) 93 OTHER REIMBURSABLE COST CENTERS 94 Home Program Dialysis Ambulance Durable Medical Equipment-Rented Durable Medical Equipment-Sold Other Reimbursable Cost Center Subtotal (see instructions) Less PBP Clinic i Lab. Services-Program 201 Only Charges 202 Net Charges (line 200 ± line 201 ) 202 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTIONS ) Rev. 1

94 Settlement Charges The Settlement charges are intended to be identified against the department that generated the charge as matching the revenues against the expense incurred to perform that treatment/service. There are several ways that t providers have undertaken the identification of the PSR charges to the Cost Center: 1. Allocate the Revenues from the PSR by revenue code to the cost centers based on internal data (Revenue and Usage) 2. Directly assigning the Revenues by revenue codes to cost centers (Crosswalk) 3. Allocate Total Charges to all cost centers based on the Total or Medicare total charges by cost center (Total Allocation) 4. A combination of the three methods identified above (3 rd most common method)

95 Settlement Charges Steps to process Settlement Charges: Identify the data to be used: Provider Statistical Report (PSR) Revenue and Usage (Medicare Patients) Settlement Crosswalk (should be consistent between years) Medicare logs Determine the Methodology Should be consistent with prior year Start with PSR

96 Settlement Charges Steps to process Settlement Charges: Adjustments to the PSR Pending Claims Errors Grouping / Allocation of Charges Ui Using Revenue and Usage files Crosswalks to Cost Centers Specialty Revenue Codes Observation Medical Supplies Implantable Devices Drugs

97 Settlement Charges Steps to process Settlement Charges: Workpapers should show the Settlement Charges Both Directions What was done with each Revenue Code (Revcode to Cost Center Crosswalk) What makes up each number in the Cost Report

98

99

100

101

102

103 Settlement Data Settlement Data is the information that is contained on the PSR that is not Charges (No Revenue Code). Examples of Settlement Data are: Deductible Co-Insurance PPS Payments (DRG, APC, RUGS, etc.) Interim Payments Capital Payments Etc.

104 4090 (Cont.) CMS FORM CALCULATION OF REIMBURSEMENT PROVIDER NO.: PERIOD: WORKSHEET E, SETTLEMENT FROM PART A COMPONENT NO.: TO Check [ ] Hospital applicable box: [ ] Subprovider (Other) PART A - INPATIENT HOSPITAL SERVICES UNDER PPS 1 DRG amounts other than outlier payments 1 2 Outlier payments for discharges (see instructions) 2 3 Managed care simulated payments 3 4 Bed days available divided by number of days in the cost reporting period (see instructions) 4 Indirect Medical Education Adjustment Calculation for Hospitals 5 FTE count for allopathic and osteopathic programs for the most recent cost reporting period ending on or 5 before 12/31/1996 (see instructions) 6 FTE count for allopathic and osteopathic programs which meet the criteria for an add-on to the cap for new programs in 6 accordance with section 1886(d)(5)(B)(viii) 7 Adjusted FTE count for allopathic and osteopathic programs for affiliated programs in accordance with 7 section 1886(d)(5)(B)(viii) 8 Reduced Direct GME FTE Cap p( (see instructions) 8 9 Sum of lines 5 through 7 plus/minus line 8 (see instructions) 9 10 FTE count for allopathic and osteopathic programs in the current year from your records FTE count for residents in dental and podiatric programs Current year allowable FTE (see instructions) Total allowable FTE count for the prior year Total allowable FTE count for the penultimate year if that year ended on or after September 30, 1997, otherwise enter zero Sum of lines 12 through 14 divided by Adjustment for residents in initial years of the program Adjustment for residents displaced by program or hospital closure Adjusted rolling average FTE count Current year resident to bed ratio (line 15 divided by line 4) Prior year resident to bed ratio (see instructions) Enter the lesser of lines 19 or 20 (see instructions) IME payment adjustment (see instructions) 22 Indirect Medical Education Adjustment for the Add-on 23 Number of additional allopathic and osteopathic IME FTE resident cap slots under 42 Sec (f)(1)(iv)(c ) IME FTE resident count over cap (see instructions) If the amount on line 24 is greater than -0-, then enter the lower of line 23 or line 24 (see instructions) Resident to bed ratio (divide line 25 by line 4) IME payments adjustment (see instructions) IME Adjustment (see instructions) Total IME payment (sum of lines 22 and 28) 29 Disproportionate Share Adjustment 30 Percentage of SSI recipient patient days to Medicare Part A patient days (see instructions) Percentage of Medicaid patient days to total days reported on Worksheet S-3, Part I (see instructions) Sum of lines 30 and Allowable disproportionate share percentage (see instructions) Disproportionate share adjustment (see instructions) 34 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

105 12-10 CMS FORM (Cont.) CALCULATION OF REIMBURSEMENT PROVIDER NO.: PERIOD: WORKSHEET E, SETTLEMENT FROM PART A (Cont.) COMPONENT NO.: TO Check [ ] Hospital applicable box: [ ] IRF PART A - INPATIENT HOSPITAL SERVICES UNDER PPS Additional payment for high percentage of ESRD beneficiary discharges 40 Total Medicare discharges on Worksheet S-3, Part I excluding discharges for MS-DRGs 652, 682, 683, and 685 (see instructions) 41 Total ESRD Medicare discharges excluding MS-DRGs 652, 682, 683, 684 an 685 (see instructions) Divide line 41 by line 40 (if less than 10%, you do not qualify for adjustment) Total Medicare ESRD inpatient days excluding MS-DRGs 652, 682, 683, 684 an 685 (see instructions) Ratio of average length of stay to one week (line 43 divided by line 41 divided by 7 days) Average weekly cost for dialysis treatments (see instructions) Total additional payment (line 45 times line 44 times line 41) Subtotal (see instructions) Hospital specific payments (to be completed by SCH and MDH, small rural hospitals only (see instructions) Total payment for inpatient operating costs SCH and MDH only (see instructions) Payment for inpatient program capital (from Worksheet L, Parts I, II, as applicable) Exception payment for inpatient program capital (Worksheet L, Part III) (see instructions) Direct graduate medical education payment (from Worksheet E-4, line 49) (see instructions) Nursing and allied health managed care payment Special add-on payments for new technologies Net organ acquisition cost (Worksheet D-4 Part III, col. 1, line 69) Cost of teaching physicians (Worksheet D-5, Part II, col. 3, line 20) Routine service other pass through costs Ancillary service other pass through costs Worksheet D, Part IV, col. 11 line 200) Total (sum of amounts on lines 49 through 58) Primary payer payments Total amount payable for program beneficiaries (line 59 minus line 60) Deductibles billed to program beneficiaries Coinsurance billed to program beneficiaries Allowable bad debts (see instructions) Adjusted reimbursable bad debts (see instructions) Allowable bad debts for dual eligible beneficiaries (see instructions) Subtotal (line 61 plus line 65 minus lines 62 and 63) Credits received from manufacturers for replaced devices applicable to MS-DRG (see instructions) Outlier payments reconciliation Other adjustments (specify) (see instructions) Amount due provider (line 67 minus lines 68 plus/minus lines 69 & 70) Interim payments Tentative settlement (for contractor use only) Balance due provider (Program) (sum of lines 71 minus the sum of lines 72 and 73) Protested amounts (nonallowable cost report items) in accordance with CMS Pub. 15-II, section TO BE COMPLETED BY CONTRACTOR 90 Operating outlier amount from Worksheet E, Part A line Capital outlier from Worksheet L, Part I, line Operating outlier reconciliation adjustment amount (see instructions) Capital outlier reconciliation adjustment amount (see instructions) The rate used to calculate the Time Value of Money (see instructions) Time Value of Money for operating expenses (see instructions) Time Value of Money for capital related expenses (see instructions) 96 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

106 4090 (Cont.) FORM CMS CALCULATION OF PROVIDER NO.: PERIOD: WORKSHEET E, REIMBURSEMENT SETTLEMENT FROM PART B COMPONENT NO.: TO Check applicable box: [ ] Hospital [ ] IPF [ ] IRF [ ] Subprovider (Other) [ ] SNF PART B - MEDICAL AND OTHER HEALTH SERVICES 1 Medical and other services (see instructions) 1 2 Medical and other services reimbursed under OPPS (see instructions). 2 3 PPS payments 3 4 Outlier payment (see instructions) 4 5 Enter the hospital specific payment to cost ratio (see instructions) 5 6 Line 2 times line Sum of lines line 3 plus line 4 divided by line Transitional corridor payment (see instructions) 8 9 Enter the amount from Worksheet D, Part IV, column 13, line Organ acquisition Total cost (sum of lines 1 and 10) (see instructions) 11 COMPUTATION OF LESSER OF COST OR CHARGES Reasonable charges 12 Ancillary service charges Organ acquisition charges (from Worksheet D 4, Part III, line 69, col. 4) Total reasonable charges (sum of lines 12 and 13) 14 Customary charges 15 Aggregate amount actually collected from patients liable for payment for services on a charge basis Amounts that would have been realized from patients liable for payment for services on a charge 16 basis had such payment been made in accordance with 42 CFR (e) 17 Ratio of line 15 to line 16 (not to exceed ) Total customary charges (see instructions) Excess of customary charges over reasonable cost (complete only if line 18 exceeds line 11) (see instructions) Excess of reasonable cost over customary charges (complete only if line 11 exceeds line 18) (see instructions) Lesser of cost or charges (line 11 or line 20) (for CAH, see instructions) Interns and residents (see instructions) Cost of teaching physicians (see instructions, 42 CFR and CMS Pub. 15 1, ) Total prospective payment (sum of lines 3, 4, 8 and 9) 24 COMPUTATION OF REIMBURSEMENT SETTLEMENT 25 Deductibles and coinsurance (see instructions) Deductibles and Coinsurance relating to amount on line 24 (see instructions) Subtotal {(lines 21 and 24 the sum of lines 25 and 26) plus the sum of lines 22 and 23} (see instructions) Direct graduate medical education payments (from Worksheet E 4, line 50) ESRD direct medical education costs (from Worksheet E 4, line 36) Subtotal (sum of lines 27 through 29) Primary py payer payments py Subtotal (line 30 minus line 31) 32 ALLOWABLE BAD DEBTS (EXCLUDE BAD DEBTS FOR PROFESSIONAL SERVICES) 33 Composite rate ESRD (from Worksheet I 5, line 11) Allowable bad debts (see instructions) Adjusted reimbursable bad debts (see instructions) Allowable bad debts for dual eligible beneficiaries (see instructions) Subtotal (sum of lines 32, 33, and 34 or 35) (line 35 hospital and subprovider only) MSP LCC reconciliation amount from PS&R Other adjustments (specify) (see instructions) Subtotal (line 37 plus or minus lines 39 minus 38) Interim payments Tentative settlement (for contractors use only) Balance due provider/program (line 40 minus the sum of lines 41, and 42) Protested amounts (nonallowable cost report items) in accordance with CMS Pub. 15 II, section FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev.1

107 4090 (Cont.) FORM CMS ANALYSIS OF PAYMENTS TO PROVIDERS PROVIDER NO.: PERIOD: WORKSHEET E-1, FOR SERVICES RENDERED FROM PART I COMPONENT NO.: TO Check [ ] Hospital [ ] Subprovider (Other) Inpatient applicable [ ] IPF [ ] SNF Part A Part B box: [ ] IRF [ ] Swing-Bed SNF mm/dd/yyyy Amount mm/dd/yyyy Amount Description Total interim payments paid to provider 1 2 Interim payments payable on individual bills, either submitted or to be submitted to the intermediary 2 for services rendered in the cost reporting period. If none, write "NONE" or enter a zero 3 List separately each retroactive lump sum adjustment amount based on subsequent revision of the Program to interim rate for the cost reporting period. Provider Also show date of each payment If none, write "NONE" or enter a zero. (1) Provider to Program Subtotal (sum of lines minus sum of lines ) Total interim payments (sum of lines 1, 2, and 3.99) 4 (transfer to Wkst. E or Wkst. E 3, line and column as appropriate) TO BE COMPLETED BY CONTRACTOR 5 List separately each tentative settlement Program to payment after desk review. Also show Provider date of each payment If none, write "NONE" or enter a zero. (1) Provider to Program Subtotal (sum of lines minus sum of lines ) Determined net settlement amount (balance Program to provider due) based on the cost report (1) Provider to program Total Medicare program liability (see instructions) 7 8 Name of Contractor Contractor Number Date (Month/Day/Year) 8 (1) On lines 3, 5, and 6, where an amount is due provider to program, show the amount and date on which the provider agrees to the amount of repayment even though total repayment is not accomplished until a later date. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4031) Rev. 1

108 12-10 FORM CMS (Cont.) CALCULATION OF REIMBURSEMENT SETTLEMENT PROVIDER NO.: PERIOD: WORKSHEET E 3, FROM PART I COMPONENT NO.: TO Check [ ] Hospital applicable [ ] Subprovider (Other) box: PART I - CALCULATION OF MEDICARE REIMBURSEMENT SETTLEMENT UNDER - TEFRA 1 Inpatient hospital services (see instructions) 1 2 Organ acquisition 2 3 Cost of teaching physicians (from Worksheet D 5, Part II, column 3, line 20) (see instructions) 3 4 Subtotal (sum of lines 1 thru 3) 4 5 Primary payer payments 5 6 Subtotal (line 4 less line 5). 6 7 Deductibles 7 8 Subtotal (line 6 minus line 7) 8 9 Coinsurance 9 10 Subtotal (line 8 minus line 9) Allowable bad debts (exclude bad debts for professional services) (see instructions) Adjusted reimbursable bad debts (see instructions) Allowable bad debts for dual eligible beneficiaries (see instructions) Subtotal (sum of lines 10 and 12) Direct graduate medical education payments (from Worksheet E 4, line 49) Other pass through costs (see instructions) Other adjustments (specify) (see instructions) Total amount payable to the provider (see instructions) Interim payments Tentative settlement (for contractor use only) Balance due provider/program (line 18 minus the sum lines 19 and 20) Protested amounts (nonallowable cost report items) in accordance with CMS Pub. 15-2, section FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

109 4090 (Cont.) FORM CMS CALCULATION OF REIMBURSEMENT SETTLEMENT PROVIDER NO.: PERIOD: WORKSHEET E 3, FROM PART II COMPONENT NO.: TO Check [ ] Hospital applicable [ ] Subprovider (Other) box: PART II - CALCULATION OF MEDICARE REIMBURSEMENT SETTLEMENT UNDER IPF PPS 1 Net Federal IPF PPS payment (excluding outlier, ECT, and medical education payments) 1 2 Net IPF PPS Outlier payment py 2 3 Net IPF PPS ECT payment 3 4 Unweighted intern and resident FTE count in the most recent cost report filed on or before November 15, 2004 (see instructions) 4 5 New teaching program adjustment (see instructions) 5 6 Current year unweighted FTE count of I&R other than FTEs in the first 3 years of a "new teaching program" (see instructions) 6 7 Current year unweighted I&R FTE count for residents within the first 3 years of a "new teaching program" (see instructions) 7 8 Intern and resident count for IPF PPS medical education adjustment (see instructions) 8 9 Average daily census (see instructions) 9 10 Medical Education Adjustment Factor {((1 + (line 8/line 9)) raised to the power of } Medical Education Adjustment (line 1 multiplied by line 10) Adjusted Net IPF PPS Payments (sum of lines 1, 2, 3 and 11) Nursing and allied health managed care payment (see instruction) Organ acquisition Cost of teaching physicians (from Worksheet D 5, Part II, column 3, line 20) (see instructions) Subtotal (see instructions) Primary payer payments Subtotal (line 16 less line 17) Deductibles Subtotal (line 18 minus line 19) Coinsurance Subtotal (line 20 minus line 21) Allowable bad debts (exclude bad debts for professional services) (see instructions) Adjusted reimbursable bad debts (see instructions) Allowable bad debts for dual eligible beneficiaries (see instructions) Subtotal (sum of lines 22 and 24) Direct graduate medical education payments (from Worksheet E 4, line 49) Other pass through costs (see instructions) Outlier payments reconciliation Other adjustments (specify) (see instructions) Total amount payable to the provider (see instructions) Interim payments Tentative settlement (for contractor use only) Balance due provider/program (line 31 minus the sum lines 32 and 33) Protested amounts (nonallowable cost report items) in accordance with CMS Pub. 15-2, section FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

110 12-10 FORM CMS (Cont.) CALCULATION OF REIMBURSEMENT SETTLEMENT PROVIDER NO.: PERIOD: WORKSHEET E 3, FROM PART III COMPONENT NO.: TO Check [ ] Hospital applicable [ ] Subprovider (Other) box: PART III - CALCULATION OF MEDICARE REIMBURSEMENT SETTLEMENT UNDER IRF PPS 1 Net Federal PPS payment (see instructions) 1 2 Medicare SSI ratio (IRF PPS only) (see instructions) 2 3 Inpatient Rehabilitation LIP payments (see instructions) 3 4 Outlier payments 4 5 Unweighted intern and resident FTE count in the most recent cost reporting period ending 5 on or prior to November 15, 2004 (see instructions) 6 New teaching program adjustment (see instructions) 6 7 Current year unweighted FTE count of I&R other than FTEs in the first 3 years of a "new teaching program" (see instructions) 7 8 Current year unweighted I&R FTE count for residents within the first 3 years of a "new teaching program" (see instructions) 8 9 Intern and resident count for IRF PPS medical education adjustment (see instructions) 9 10 Average daily census (see instructions) ti Medical Education Adjustment Factor {((1 + (line 9/line 10)) raised to the power of } Medical Education Adjustment (line 1 multiplied by line 11) Total PPS Payment (sum of lines 1, 3, 4 and 12) Nursing and Allied Health Managed Care payment (see instructions) Organ acquisition Cost of teaching physicians (from Worksheet D 5, Part II, column 3, line 20) (see instructions) Subtotal (see instructions) Primary payer payments Subtotal (line 17 less line 18) Deductibles Subtotal (line 19 minus line 20) Coinsurance Subtotal (line 21 minus line 22) Allowable bad debts (exclude bad debts for professional services) (see instructions) Adjusted reimbursable bad debts (see instructions) Allowable bad debts for dual eligible beneficiaries (see instructions) Subtotal (sum of lines 23 and 25) Direct graduate medical education payments (from Worksheet E 4, line 49) Other pass through costs (see instructions) Outlier payments reconciliation Other adjustments (specify) (see instructions) Total amount payable to the provider (see instructions) Interim payments Tentative settlement (for contractor use only) Balance due provider/program (line 32 minus the sum lines 33 and 34) Protested amounts (nonallowable cost report items) in accordance with CMS Pub. 15-2, section FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

111 4090 (Cont.) FORM CMS CALCULATION OF CAPITAL PAYMENT PROVIDER NO.: PERIOD: WORKSHEET L FROM COMPONENT NO.: TO Check [ ] Title V [ ] Hospital [ ] PPS applicable [ ] Title XVIII, Part A [ ] Subprovider (other) [ ] Cost Method boxes: [ ] Title XIX PART I FULLY PROSPECTIVE METHOD CAPITAL FEDERAL AMOUNT 1 Capital DRG other than outlier 1 2 Capital DRG outlier payments 2 3 Total inpatient days divided by number of days in the cost reporting period (see instructions) 3 4 Numberof interns & residents (see instructions) 4 5 Indirect medical education percentage (see instructions) 5 6 Indirect medical education adjustment (sum of lines 1 & 2 times line 5) 6 7 Percentage of SSI recipient patient days to Medicare Part A patient days (Worksheet E, part A line 30) (see instructions) 7 8 Percentage of Medicaid patient days to total days reported on Worksheet S 3, Part I (see instructions) 8 9 Sum of lines 3 and Allowable disproportionate share percentage (see instructions) Disproportionate share adjustment (line 6 times the sum of lines 1 and 2) Total prospective p capital py payments (sum of lines 1 2, 6 and 11) 12 PART II PAYMENT UNDER REASONABLE COST 1 Program inpatient routine capital cost (see instructions) 1 2 Program inpatient ancillary capital cost (see instructions) 2 3 Total inpatient program capital cost (line 1 plus line 2) 3 4 Capital cost payment factor (see instructions) 4 5 Total inpatient program capital cost (line 3 x line 4) 5 PART III COMPUTATION OF EXCEPTION PAYMENTS 1 Program inpatient capital costs (see instructions) 1 2 Program inpatient capital costs for extraordinary circumstances (see instructions) 2 3 Net program inpatient capital costs (line 1 minus line 2) 3 4 Applicable exception percentage (see instructions) 4 5 Capital cost for comparison to payments (line 3 x line 4) 5 6 Percentage adjustment for extraordinary circumstances (see instructions) 6 7 Adjustment to capital minimum payment level for extraordinary circumstances (line 2 x line 6) 7 8 Capital minimum payment level (line 5 plus line 7) 8 9 Current year capital payments (from Part I, line 12 as applicable) 9 10 Current year comparison of capital minimum payment level to capital payments (line 8 less line 9) Carryover of accumulated capital minimum payment level over capital payment 11 (from prior year Worksheet L, Part III, line 14) 12 Net comparison of capital minimum payment level to capital payments (line 10 plus line 11) Current year exception payment (if line 12 is positive, enter the amount on this line) Carryover of accumulated capital minimum payment level over capital payment 14 for the following period (if line 12 is negative, enter the amount on this line) 15 Current year allowable operating and capital payment (see instructions) Current year operating and capital costs (see instructions) Current year exception offset amount (see instructions) 17 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTIONS ) Rev. 1

112 Settlement Data Steps to process Settlement Data: Identify the data to be used: Provider Statistical Report (PSR) Medicare logs Settlement Crosswalk Start with PSR Adjustments to the PSR Pending Claims Errors Grouping Settlement Data Time Sensitive Data

113 Settlement Data The following is the basic IP Grouping of Settlement Data: Federal Specific Payments Outliers Co-Insurance Deductible Medicare Secondary Payor Payments (MSP) Etc.

114

115

116 WS S-2 (Provider Questionnaire) WS S-2 is designed to provide CMS with basic demographic information about the hospital to identify various reimbursement mechanisms as well as specialty programs and services. Mostly Yes/No Answers Misc Data

117 4090 (Cont.) FORM CMS HOSPITAL AND HOSPITAL HEALTH CARE PROVIDER NO.: PERIOD WORKSHEET S 2 COMPLEX IDENTIFICATION DATA FROM PART I TO Hospital and Hospital Health Care Complex Address: 1 Street: P.O. Box: 1 2 City: State: Zip Code: County: 2 Hospital and Hospital Based Component Identification: Component CCN CBSA Provider Date Payment System (P, T, O, or N) Component Name Number Number Type Certified V XVIII XIX Hospital 3 4 Subprovider IPF 4 5 Subprovider IRF 5 6 Subprovider (Other) 6 7 Swing Beds SNF 7 8 Swing Beds NF 8 9 Hospital Based SNF 9 10 Hospital Based NF Hospital Based OLTC Hospital Based HHA Separately Certified ASC Hospital Based Hospice Hospital Based Health Clinic RHC Hospital Based Health Clinic FQHC Hospital Based (CMHC) Renal Dialysis Other Cost Reporting Period (mm/dd/yyyy) From: To: Type of control (see instructions) 21 Inpatient PPS Information Does this facility qualify for and receive disproportionate share hospital payment in accordance with 42 CFR , or low income payment in accordance with 42 CFR (e)(2)? 22 In column 1, enter "Y" for yes and "N" for no. Is this facility subject to 42 CFR (c )(2) (Pickle amendment hospital)? In column 2, enter "Y" for yes or "N" for no. 23 Which method is used to determine Medicaid days on Worksheet S 3, Part I, line 32, column 7? In column 1, enter 1 if date of admission, 2 if census days, or 3 if date of discharge. 23 Is the method of identifying the days in this cost reporting period different from the method used in the prior cost reporting period? In column 2, enter "Y" for yes or "N" for no. In State In State Out of State Out of State Medicaid Other Medicaid Medicaid Medicaid Medicaid HMO Medicaid paid days eligible days paid days eligible days days days If line 22 is "yes", and this provider is an IPPS hospital enter the in state Medicaid paid days in col. 1, in state 24 Medicaid eligible days in col. 2 out of state Medicaid paid days in col. 3, out of state Medicaid eligible days in col. 4, Medicaid HMO days in col. 5, and other Medicaid days in col If line 22 is "yes", and this provider is an IRF then, enter the in state Medicaid paid days in col. 1, in state 25 Medicaid eligible days in col. 2, out of state Medicaid days in col. 3, out of state Medicaid eligible days in col. 4 Medicaid HMO days in col. 5 and other Medicaid days in col Enter your standard dgeographic classification i (not wage) status at the beginning i of the cost reporting period. Enter "1" for urban and "2" for rural Enter your standard geographic classification (not wage) status at the end of the cost reporting period. Enter "1" for urban and "2" for rural. 27 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

118 12-10 FORM CMS (Cont.) HOSPITAL AND HOSPITAL HEALTH CARE PROVIDER NO.: PERIOD WORKSHEET S 2 COMPLEX IDENTIFICATION DATA FROM PART I (CONT.) TO 35 If this is a sole community hospital (SCH), enter the number of periods SCH status in effect in the cost reporting gperiod Enter applicable beginning and ending dates of SCH status. Subscript line 36 for number of periods in excess of one and enter subsequent dates. Beginning: Ending: If this is a Medicare dependent hospital (MDH), enter the number of periods MDH status in effect in the cost reporting period Enter applicable beginning and ending dates of MDH status. Subscript line 38 for number of periods in excess of one and enter subsequent dates. Beginning: Ending: 38 V XVIII XIX Prospective Payment System (PPS) Capital Does this facility qualify and receive capital payment for disproportionate share in accordance with 42 CFR ? (see instructions) Is this facility eligible for the special exceptions py payment pursuant to 42 CFR (g)? If yes, complete Worksheet L, Part III and L 1, Parts I through III Is this a new hospital under 42 CFR PPS capital? Enter "Y for yes and "N" for no in column Is the facility electing full federal payment? Enter "Y" for yes and "N" for no in column 2. V XVIII XIX Teaching Hospitals Is this a teaching hospital? Enter "Y" for yes or "N" for no If line 55 is yes, is this teaching program approved in accordance with CMS Pub. 15 1, chapter 4? If line 56 is yes, was Medicare participation p and approved teaching program status in effect during the first month of the cost reporting gperiod? 57 If yes, complete Worksheet E 4. If no, complete Worksheet D, Part III & IV and D 2, Part II, if applicable. 58 If line 55 is yes, did this facility elect cost reimbursement for physicians' services as defined in CMS Pub. 15 1, section 2148? 58 If yes, complete Worksheet D Are costs claimed on line 100 of Worksheet A? If yes, complete Worksheet D 2, Part I Has this facility's direct GME FTE cap (column 1) or IME FTE cap (column 2) been reduced under 42 CFR (c)(3) or 42 CFR (f)(1)(iv)(B)? 60 Enter "Y" for yes and "N" for no in the applicable columns. (see instructions) 61 Has this facility received additional direct GME FTE resident cap slots or IME FTE residents cap slots under 42 CFR (c)(4) or 42 CFR (f)(1)(iv)(C)? 61 Enter "Y" for yes and "N" for no in the applicable columns. (see instructions) 62 Are costs claimed for nursing and allied health costs? (see instructions) 62 Inpatient Psychiatric Facility PPS 70 Is this facility an Inpatient Psychiatric Facility (IPF), or does it contain an IPF subprovider? Enter "Y" for yes and "N" for no If line 70 yes: 71 Column 1: Did the facility have a teaching program in the most recent cost report filed on or before November 15, 2004? Enter "Y" for yes or "N" for no. Column 2: Did this facility training residents in a new teaching program in accordance with 42 CFR (d)(1)(iii)(d)? Enter "Y" for yes and "N" for no. Column 3: If column 2 is Y, enter 1, 2 or 3 respectively in column 3. (see instructions) If this cost reporting period covers the beginning of the fourth year, enter 4 in column 3, or if the subsequent academic years of the new teaching program in existence, enter 5. (see instructions) Inpatient Rehabilitation Facility PPS 75 Is this facility an Inpatient Rehabilitation Facility (IRF), or does it contain an IRF subprovider? Enter "Y" for yes and "N" for no If line 75 yes: 76 Column 1: Did the facility have a teaching program in the most recent cost reporting period ending on or before November 15, 2004? Enter "Y" for yes or "N" for no. Column 2: Did this facility training residents in a new teaching program in accordance with 42 CFR (d)(1)(iii)(d)? Enter "Y" for yes and "N" for no. Column 3: If column 2 is Y, enter 1, 2 or 3 respectively in column 3. (see instructions) If this cost reporting period covers the beginning of the fourth year, enter 4 in column 3, or if the subsequent academic years of the new teaching program in existence, enter 5. (see instructions) FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION ) Rev. 1

119 12-10 FORM CMS (Cont.) HOSPITAL AND HOSPITAL HEALTH CARE PROVIDER NO.: PERIOD WORKSHEET S 2 COMPLEX IDENTIFICATION DATA FROM PART I (CONT.) TO Long Term Care Hospital PPS 80 Is this a Long Term Care Hospital (LTCH)? Enter "Y" for yes or "N" for no. 80 TEFRA Providers 85 Is this a new hospital under 42 CFR (f)(1)(i) TEFRA? Enter "Y" for yes, and "N" for no Did this facility establish a new Other subprovider (excluded unit) under 42 CFR (f)(1)(ii)? Enter "Y" for yes, and "N" for no. 86 V XIX Title V and XIX Inpatient Services Does this facility have title V and/or XIX inpatient hospital services? Enter "Y" for yes, and "N" for no in applicable column Is this hospital reimbursed for title V and/or XIX through the cost report either in full or in part? Enter "Y" for yes, and "N" for no in the applicable column Are title XIXNF patients occupying title XVIII SNFb beds (dual certification)? i (see instructions) i Enter "Y" for yes, and "N" for no in the applicable column Does this facility operate an ICF\MR facility for purposes of title V and XIX? Enter "Y" for yes, and "N" for no in the applicable column Does title V or title XIX reduce capital cost? Enter "Y" for yes or "N" for no in the applicable column If line 94 is "Y", enter the reduction percentage in the applicable column Does title V or title XIX reduce operating cost? Enter "Y" for yes or "N" for no in the applicable column If line 96 is "Y", enter the reduction percentage in the applicable column. 97 Rural Providers 105 Does this hospital qualify as a Critical Access Hospital (CAH)? If this facility qualifies as a CAH, has it elected the all inclusive method of payment for outpatient services? (see instructions) Column 1: If this facility qualifies as a CAH, is it eligible for cost reimbursement for I &R training programs? Enter "Y" for yes and "N" for no in column 1. (see 107 instructions) If yes, the GME elimination would not be on Worksheet B, Part I, column 26 and the program would be cost reimbursed. If yes complete Worksheet D 2, Part II. Column 2: If this facility is a CAH, do I&Rs in an approved medical education program train in the CAH's excluded IPF and/or IRF unit? Enter "Y" for yes or "N" for no in column 2. (see instructions) 108 Is this a rural hospital qualifying for an exception to the CRNA fee schedule? See 42 CFR (c). 108 Physical Occupational Speech Respiratory 109 If this hospital qualifies as a CAH or a cost provider, are therapy services provided by outside supplier? Enter "Y" for yes or "N" for each therapy. 109 Miscellaneous Cost Reporting Information 115 Is this an all inclusive rate provider? Enter "Y" for yes and "N" for no in column 1. If yes, enter the method used (A, B, or E only) in column Is this facility classified as a referral center? Is this facility legally required to carry malpractice insurance? Is the malpractice insurance a claims made or occurrence policy? Enter 1 if the policy is claim made. Enter 2 if the policy is occurrence What is the liability limit for the malpractice insurance policy? Enter in coumn 1 the monetary limit per lawsuit. Enter in column 2 the monetary limit per policy year Is this a SCH or EACH that qualifies for the Outpatient Hold Harmless provision in ACA 3121? Enter in column 1 "Y" for yes or "N" for no. 120 Is this a rural hospital with <100 beds that qualifies for the Outpatient Hold Harmless provision in ACA 3121? Enter in column 2 "Y" for yes or "N" for no. Transplant Center Information 125 Does this facility operate a transplant center? Enter "Y" for yes and "N" for no. If yes, enter certification date(s) (mm/dd/yyyy) / below If this is a Medicare certified kidney transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified heart transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified liver transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified lung transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified pancreas transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified intestinal transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified islet transplant center, enter the certification date in column 1 and termination date, if applicable, in column If this is a Medicare certified other transplant center, enter the certification date in column 1 and termination date, if applicable, in column ## If this is an organ procurement organization (OPO), enter the OPO number in column 1 and termination date, if applicable, in column FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

120 4090 (Cont.) FORM CMS HOSPITAL AND HOSPITAL HEALTH CARE PROVIDER NO.: PERIOD WORKSHEET S 2 COMPLEX IDENTIFICATION DATA FROM PART I (CONT.) TO All Providers Are there any related organization or home office costs as defined in CMS Pub. 15 1, chapter 10? Enter "Y" for yes and "N" for no in column If yes, and home office costs are claimed, enter in column 2 the home office chain number. (see instructions) If this facility is part of a chain organization, enter on lines 141 through 143 the name and address of the home office and enter the home office contractor name and contractor number. 141 Name: Contractor's Name: Contractor's Number: Street: P. O. Box: City: State: Zip Code: Are provider based physicians' costs included in Worksheet A? If costs for renal services are claimed on Worksheet A, are they costs for inpatient services only? Has the cost allocation methodology changed from the previously filed cost report? Enter "Y" for yes and "N" for no in column 1. (See CMS Pub. 15 2, section 4020) 146 If yes, enter the approval date (mm/dd/yyyy) in column Was there a change in the statistical basis? Was there a change in the order of allocation? Was the change to the simplified cost finding method? 149 Does this facility contains a provider that qualifies for an exemption from the application of the lower of costs or charges? Enter "Y" for yes or "N" for no for each component for Part A and Part B. Part A Part B (See 42 CFR ) Hospital Subprovider IPF Subprovider IRF Subprovider Other SNF HHA CMHC 161 Multicampus 165 Is this hospital part of a multicampus hospital that has one or more campuses in different CBSAs? Enter "Y" for yes and "N" for no If line 165 is yes, enter the name in column 0, county in column 1, state in column 2, zip in column 3, CBSA in column 4, FTE/Campus in column Name County State Zip Code CBSA FTE/Campus Health Information Technology incentive in the American Recovery and Reinvestment Act (HIT) 167 Is this provider a meaningful user under 1886 (n)? Enter "Y" for yes or "N" for no If this provider is a CAH (line 105 is "Y") Y) and is a meaningful user (line 167 is "Y") Y), enter the reasonable cost incurred for the HIT assets. (see instructions) If this provider is a meaningful user (line 167 is "Y") and is not a CAH (line 105 is "N"), enter the transition factor. (see instructions) 169 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

121 WS S-2 Data Sources used on WS S-2: Prior Year Cost Report General Ledger Statistics

122 WS S-3 Part 1 (Census Data) WS S-3 Part 1 is designed to provide CMS with the Volume of Services (Patient Days/Discharges) as well as Visits for specific Services. Medicare Medicaid id Total

123 12-10 FORM CMS (Cont.) HOSPITAL AND HOSPITAL HEALTH CARE COMPLEX PROVIDER NO.: PERIOD WORKSHEET S 3 STATISTICAL DATA FROM PART I TO Inpatient Days / Outpatient Visits / Trips Full Time Equivalents Discharges Worksheet A Total Total Employees Total Line No. of Bed Days CAH Title Title All Interns & On Nonpaid Title Title All Component No. Beds Available Hours Title V XVIII XIX Patients Residents Payroll Workers Title V XVIII XIX Patients Hospital Adults & Peds. (columns 5, 1 6, 7 and 8 exclude Swing Bed, Observation Bed and Hospice days) 2 HMO 2 3 HMO IPF 3 4 HMO IRF 4 5 Hospital Adults & Peds. Swing Bed SNF 5 6 Hospital Adults & Peds.Swing Bed NF 6 7 Total Adults and Peds. (exclude 7 observation beds) (see instructions) 8 Intensive Care Unit Uit 8 9 Coronary Care Unit 9 10 Burn Intensive Care Unit Surgical Intensive Care Unit Other Special Care Nursery Total (see instructions) CAH visits Subprovider IPF Subprovider IRF Subprovider Other Skilled Nursing Facility Nursing Facility Other Long Term Care Home Health Agency ASC (Distinct Part) Hospice (Distinct Part) CMHC RHC/FQHC (specify) Total (sum of lines 14 26) Observation Bed Days Ambulance Trips Employee discount days (see instructions) Employee discount days IRF Labor & delivery days (see instructions) LTCH non covered days 33 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

124 WS S-3 Part 1 Steps to process WS S-3 Part 1 Data: Identify the data to be used: Midnight Census Patient Accounting System Statistics Provider Summary Report (PSR) Medicare logs CDM with Volumes Observation Logs Payroll Register Statistics Grouping WS S-3 Part 1

125 WS S-3 Part 1 Steps to process WS S-3 Part 1 Data: Sort and Subtotal Workpapers should show the WS A Cost Center Grouping as well as the WS S-3 Part 1 Line Grouping

126

127 WS S-3 Part 2 (Wage Index) WS S-2 is designed to identify the Average Hourly Wage of Staff and Contract Employees at the Hospital by Department or Category. Identify Duplication of Hours Shift Differential Overtime

128 4090 (Cont.) FORM CMS HOSPITAL WAGE INDEX INFORMATION PROVIDER NO.: PERIOD WORKSHEET S 3 FROM PART II TO Part II Wage Data Worksheet Reclassification Adjusted Paid Hours Average A of Salaries Salaries Related Hourly Wage Line Amount (from (column 2 ± to Salaries (column 4 Number Reported Worksheet A 6) column 3) in column 4 column 5) SALARIES 1 Total salaries (see instructions) 1 2 Non physician anesthetist Part A 2 3 Non physician anesthetist Part B 3 4 Physician Part A 4 5 Physician Part B 5 6 Non physician Part B 6 7 Interns & residents (in an approved program) 7 8 Home office personnel 8 9 SNF 9 10 Excluded area salaries (see instructions) 10 OTHER WAGES AND RELATED COSTS 11 Contract labor (see instructions) Management and administrative services Contract labor: physician Part A Home office salaries & wage related costs Home office: physician Part A Teaching physician salaries (see instructions) 16 WAGE RELATED COSTS 17 Wage related costs (core) Worksheet S 3, Part IV line Wage related costs (other) WorksheetS 3 3, PartIV line Excluded areas Non physician anesthetist Part A Non physician anesthetist Part B Physician Part A Physician Part B Wage related costs (RHC/FQHC) Interns & residents (in an approved program) 25 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

129 12-10 FORM CMS (Cont.) HOSPITAL WAGE INDEX INFORMATION PROVIDER NO.: PERIOD WORKSHEET S 3 FROM PART II & III TO Part II Wage Data Worksheet Reclassification Adjusted Paid Hours Average A of Salaries Salaries Related Hourly Wage Line Amount (from (column 2 ± to Salaries (column 4 Number Reported Worksheet A 6) column 3) in column 4 column 5) OVERHEADCOSTS DIRECT SALARIES 26 Employee Benefits Administrative & General Administrative & General under contract (see instructions) Maintenance & Repairs Operation of Plant Laundry & Linen Service Housekeeping Housekeeping under contract (see instructions) Dietary Dietary under contract (see instructions) Cafeteria Maintenance of Personnel Nursing Administration Central Services and Supply Pharmacy Medical Records & Medical Records Library Social Service Other General Service 43 PartIII Hospital Wage Index Summary 1 Net salaries (see instructions) 1 2 Excluded area salaries (see instructions) 2 3 Subtotal salaries (line 1 minus line 2) 3 4 Subtotal other wages and related costs (see instructions) 4 5 Subtotal wage related costs (see instructions) 5 6 Total (sum of lines 3 through 5) 6 7 Total overhead cost (see instructions) ti 7 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

130 WS S-3 Part 2 Steps to process WS S-3 Part 2 Data: Identify the data to be used: General Ledger Payroll Register Contract Labor Files Home office Documentation Start with GL or Reconcile to the GL Processing Payroll Hours Identify duplicate Hours Identify Non-Payroll items Incorporate WS A-6 Reclasses of Salary Exp.

131 WS S-3 Part 2 Steps to process WS S-3 Part 2 Data: Grouping by Category on WS S-3 Part 2 Sort and Subtotal Workpapers should contain the WS A Grouping as well as the WS S- 3 part 2 Grouping

132

133

134 WS S-10 (Uncompensated Care) WS S-10 is designed to identify what portion of the Hospitals Business and Profitability is provided to Uncompensated and Indigent care Patients. This worksheet WILL become the new calculation for DSH.why? State Specific variances in Medicaid Eligibility State Specific variations in coverage of services CMS is just making sure that the data they collect is accurate for the DSH calc

135 12-10 FORM CMS (Cont.) HOSPITAL UNCOMPENSATED AND INDIGENT PROVIDER NO.: PERIOD: WORKSHEET S 10 CARE DATA FROM TO Uncompensated and indigent care cost computation tti 1 Cost to charge ratio (Worksheet C, Part I line 200 column 3 divided by line 200 column 8) 1 Medicaid (see instructions for each line) 2 Net revenue from Medicaid 2 3 Did you receive DSH or supplemental payments from Medicaid? 3 4 If line 3 is yes, does line 2 include all DSH or supplemental payments from Medicaid? 4 5 If line 4 is no, enter DSH or supplemental payments from Medicaid 5 6 Medicaid charges 6 7 Medicaid cost (line 1 times line 6) 7 8 Difference between net revenue and costs for Medicaid program (line 2 plus line 5 minus line 7) 8 State Children's Health Insurance Program (SCHIP) (see instructions for each line) 9 Net revenue from stand alone SCHIP 9 10 Stand alone SCHIP charges Stand alone SCHIP cost (line 1 times line 10) Difference between net revenue and costs for stand alone SCHIP (line 9 minus line 11) 12 Other state or local government indigent care program (see instructions for each line) 13 Net revenue from state or local indigent care program (not included on lines 2, 5 or 9) Charges for patients covered under state or local indigent care program (not included in lines 6 or 10) State or local indigent care program cost (line 1 times line 14) Difference between net revenue and costs for state or local indigent care program (line 13 minus line 15) 16 Uncompensated care (see instructions for each line) 17 Private grants, donations, or endowment income restricted to funding charity care Government grants, appropriations p or transfers for support of hospital operations Total unreimbursed cost for Medicaid, SCHIP and state and local indigent care programs (sum of lines 8, 12 and 16) 19 Uninsured Insured Total patients patients (col. 1 + col. 2) Total initial obligation of patients approved for charity care (at full charges excluding 20 non reimbursable cost centers) for the entire facility 21 Cost of initial obligation of patients approved for charity care (line 1 times line 20) Partial paymentby patients approved forcharity care Cost of charity care (line 21 minus line 22) Does the amount in line 20, column 2 include charges for patient days beyond a length of stay limit imposed on patients covered 24 by Medicaid or other indigent care program? 25 If line 24 is yes, enter charges for patient days beyond an indigent care program's length of stay limit (see instructions) Total bad debt expense for the entire facility (see instructions) Medicare bad debts for 1886(d) hospitals from Worksheets E, Part A and E, Part B, or for CAHs from Worksheet E 3, Part V Non Medicare and non reimbursable bad debt expense (line 26 minus line 27) Cost of non Medicare bad debt expense (line 1 times line 28) Cost of non Medicare uncompensated care (line 23 column 3 plus line 29) Total unreimbursed and uncompensated care cost (line 19 plus line 30) 31 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4012) Rev

136 WS S-10 Steps to process WS S-10 Data: Identify the data to be used: General Ledger Patient Accounting System Analysis AR outstanding Reports Decision Support Queries Group, Sort and Subtotal Workpapers p should clearly identify Where the data was obtained and what the basis of the information is

137

138

139 Documentation is the Key! Why have we stressed documentation? Increasing Complexity Time Lag between Preparation and Audit Staff Turnover Accuracy, Efficiency and Consistency

140 Electronic vs. Manual data Processing With voluminous data that needs to be processed and re-processed many time over to achieve all of the analysis that are required for the cost report it is important to gain efficiency. It is always important to make sure that accuracy is never compromised for efficiency, but manual processing should only be used when the data/analysis changes from year to year. Where the data/analysis remains consistent electronic processing should be used. Some ways to use electronic processing are: Excel Access KPMG GL Download Import HFS AAI Import Other products that can help Monarch Easy WP Decision Support Systems

141 Special Issues Critical Access Hospitals Home Office Cost Statements Skilled Nursing Cost Reports Home Health Cost Reports Community Mental Health Centers Cost Reports

142 WS A-8-1 (Related Parties) Related party transactions are transactions where a facility is doing business with a company or organization that has an owner or a controlling Manager that is also an owner or controlling Manager at the facility. This definition also includes instances where one organization has directorship over another. Arms Length Transactions Actual Cost of the service/supply

143 4090 (Cont.) FORM CMS STATEMENT OF COSTS OF SERVICES PROVIDER NO.: PERIOD: WORKSHEET A 8 1 FROM RELATED ORGANIZATIONS AND FROM HOME OFFICE COSTS TO A. COSTS INCURRED AND ADJUSTMENTS REQUIRED AS A RESULT OF TRANSACTIONS WITH RELATED ORGANIZATIONS OR CLAIMED HOME OFFICE COSTS: Amount Net Amount of included in Adjustments Wkst. Allowable Wkst. A (col. 4 minus A 7 Line No. Cost Center Expense Items Cost column 5 col. 5) * Ref TOTALS (sum of lines 1 4) Transfer column 6, line 5 to Worksheet 5 A 8, column 2, line 12. * The amounts on lines 1 through 4 (and subscripts as appro priate) are transferred in detail to Worksheet A, column 6, lines as appro priate. P ositive amounts increase cost and negative amounts decrease cost. For related organization or home office cost which have not been posted to Worksheet A, columns 1 and/or 2, the amount allowable should be indicated in column 4 of this part. B. INTERRELATIONSHIP TO RELATED ORGANIZATION(S) AND/OR HOME OFFICE: The Secretary, by virtue of the authority granted under section 1814(b)(1) of the Social Security Act, requires that you furnish the information requested under P art B of this worksheet. Related Organization(s) and/orhome Office Percentage Percentage Symbol of of Type of (1) Name Ownership Name Ownership Business (1) Use the following symbols to indicate interrelationship to related organizations: A. Individual has financial interest (stockholder, partner, etc.) in both related E. Individual is director, officer, administrator, or key person of provider and organization and in provider. related o rganizatio n. B. Corporation, partnership, or other organization has financial interest in provider. F. Director, officer, administrator, or key person of related organization or relative C. P rovider has financial interest in corporation, partnership, or other organization. of such person has financial interes t in pro vider. D. Director, officer, administrator, or key person of provider or relative of such G. Other (financial or non-financial) specify person has financial interest in related organization. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4017) Rev. 1

144 WS A-8-1 Steps to process WS A-8-1 Data: Identify the data to be used: General Ledger Home Office cost statement Related Party expenses (GL, TB, AFS, etc.) Identify the expenses on facility GL Identify the Related Party Expense that corresponds to the expense incurred at the facility Group, Sort and Subtotal Workpapers should clearly identify Where the data was obtained and what the basis of the information is

145 WS A-8-2 (Physician Compensation) CMS believes that MDs go to many years of school to learn to treat patients, therefore unless otherwise documented ALL Physician activities are Patient Treatment. WS A-8-2 is where the Facility can document the component of MD payments that are for Administrative Duties.

146 WS A-8-2 Physician Patient Treatment Time (Part B): Any time or activity where an MD is working on/for an individual Patient Chart Review Intervention Progress Notes Research

147 WS A-8-2 Physician Administrative Time (Part A): Activities that are designed to help the facility manage the treatment of all of its patients Medical Directors Utilization/Quality Review Department Directorship Do NOT include activities that are meant to Manage the MDs Practice! Part A Activies MUST be Documented!

148 WS A-8-2 How to document Part A vs. Part B Part A Time Studies (2 two week time Studies in non-consecutive Quarters) Timely signatures Contracts Part B Unless noted as Part A time, ALL time is assumed to be for Part B activities

149 12-10 FORM CMS (Cont.) PROVIDER-BASED PHYSICIANS ADJUSTMENTS PROVIDER NO.: PERIOD: WORKSHEET A-8-2 FROM TO Cost Center/ Physician/ 5 Percent of Wkst. A Physician Total Professional Provider RCE Provider Unadjusted Unadjusted Line # Identifier Remuneration Component Component Amount Component Hours RCE Limit RCE Limit TOTAL 200 Cost of Provider Physician Provider Cost Center/ Memberships Component Cost of Component Wkst. A Physician & Continuing Share of Malpractice Share of Adjusted RCE Line # Identifier Education col. l12 Insurance col. l14 RCE Limit it Disallowance Adjustment t TOTAL 200 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION 4018) Rev

150 WS A-8-2 Steps to process WS A-8-2 Data: Identify the data to be used: General Ledger Payroll Register Physician Contracts, and Invoices Physician Time Studies Organize Data by MD or by Cost Center MD specific data is better documentation Cost Center is for Summary

151 WS A-8-2 Steps to process WS A-8-2 Data: Identify total compensation paid to ALL MDs Salary Benefits Malpractice Insurance Dues and Fees Housing Allowance Etc. Identify the Part A vs. Part B Time Studies Contracts

152 WS A-8-2 Steps to process WS A-8-2 Data: Calculate Part A vs. Part B Total Paid Hrs Total Compensation Sort and Subtotal These workpapers should make sure to be able to trace their information to the source documentation as well as allow the auditors to easy follow the flow of the calculations and data

153 WS H Series (Home Health Agency) Home Health services are paid on the HH Prospective Payment System (HH PPS). Home Health Agencies (HHA) must bill for all of the following provided during the 60-day HH episode: Skilled nursing services; Physical therapy (PT), occupational therapy (OT), and speech-language pathology (SLP) services; Routine and non-routine medical supplies; HH aide services; and Medical social services. The WS H series is designed to identify the cost of HH services by the various disciplines.

154 WS H Series The WS H Series consists of the following Worksheets: WS S-4 Hospital-based Home Health Agency Statistical Data Line 1-20 obtain mostly from internal data (FTEs, Unduplicated Census, etc.) Line is the accumulation of PPS data obtain from the Medicare PSR. WS H Analysis of Hospital-based Home Health Agency Costs Summarization of HHA costs by type (salary, benefit, etc.) and by HHA discipline (Skilled Nursing, PT, OT, Etc) from the general ledger. WS H, Line 24, Col. 10 Net Expenses for Allocation must equal the amount reported on WS A, Line 101, Col. 7.

155 WS H Series WS H-1 Part I Cost Allocation HHA Statistical Basis Serves the purpose of using statistical data on Part II of worksheet to allocate HHA specific Capital, Overhead and A&G costs to the HHA patient disciplines. WS H-2 Part I Allocation of General Service Costs to HHA Allocation of general services costs (Overhead Costs) from WS B, Part I, Line 101, overhead columns to HHA patient disciplines by means of statistical bases on WS H-2 Part II. WS H-3 H-5 HHA Cost Apportionment and Settlement Serves the purpose of calculating the Medicare portion of HHA costs by ratio of Medicare visits to total visits multiplied by HHA costs. Calculates Medicare Due To/From.

156 WS I Series (Renal Dialysis) Renal Dialysis services are paid on the Composite Rate (PPS), while the Epogene (Drug) is reimbursed on a $0.10 per unit flat rate. The WS I series is designed to identify the cost of Renal Dialysis treatments by the Treatment Modalities.

157 WS I Series The WS I Series consists of the following Worksheets: WS S-5 (Renal Dialysis Treatment stats) WS I-1 (Identification of Renal Dialysis i Expenses by type of Expense) Must Reconcile to WS A line 74 (Renal Dialysis) WS I-2 (Allocation of Expenses to the Treatment Modalities) No input Required

158 WS I Series WS I-3 (Statistics for each expense type for each Modality) Hemodialysis Peritoneal Dialysis Training Maintenance Home Program WS I-4 (Calculation of the Average Cost of treatment by Modality) WS I-5 (Calculation of Reimbursable Bad Debts)

159 12-10 FORM CMS (Cont.) HOSPITAL RENAL DIALYSIS DEPARTMENT PROVIDER NO.: PERIOD: WORKSHEET S 5 STATISTICAL DATA FROM TO RENAL DIALYSIS STATISTICS Outpatient Training Home Hemo CAPD Hemo CAPD DESCRIPTION Regular High Flux dialysis CCPD dialysis CCPD Number of patients in program at 1 end of cost reporting period 2 Number of times per week patient 2 receives dialysis 3 Average patient dialysis time including setup 3 4 CAPD exchanges per day 4 5 Number of days in year dialysis furnished 5 6 Number of stations 6 7 Treatment capacity per day per station 7 8 Utilization (see instructions) ti 8 9 Average times dialyzers re used 9 10 Percentage of patients re using dialyzers 10 TRANSPLANT INFORMATION 11 Number of patients on transplant list Number of patients transplanted during the cost reporting period 12 EPOETIN 13 Net costs of Epoetin furnished to all maintenance dialysis patients by the provider Epoetin amount from Worksheet A for home dialysis program Number of EPO units furnished relating to the renal dialysis department Number of EPO units furnished relating to the home dialysis department 16 ARANESP 17 Net costs of ARANESP furnished to all maintenance dialysis patients by the provider ARANESP amount from Worksheet A for home dialysis program Number of ARANESP units furnished relating to the renal dialysis department Number of ARANESP units furnished relating to the home dialysis department 20 PHYSICIAN PAYMENT METHOD (Enter "X" for applicable method(s)) 21 MCP INITIAL METHOD 21 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION 4007) Rev

160 12-10 FORM CMS (Cont.) ANALYSIS OF RENAL DIALYSIS DEPARTMENT COSTS PROVIDER NO.: PERIOD: WORKSHEET I 1 FROM TO Check applicable box: [ ] Renal Dialysis Department [ ] Home ProgramDialysis TOTAL FTEs per COSTS BASIS STATISTICS 2080 Hours Registered Nurses Hours of Service 1 2 Licensed Practical Nurses Hours of Service 2 3 Nurses Aides Hours of Service 3 4 Technicians Hours of Service 4 5 Social Workers Hours of Service 5 6 Dieticians Hours of Service 6 7 Physicians Accumulated Cost 7 8 Non patient Care Salary Accumulated Cost 8 9 Subtotal (sum of lines 1 8) 9 10 Employee Benefits Salary Capital Related Costs Bldgs. & Fixtures Square Feet Capital Related Costs Mov. Equip. Percentage of Time Machine Costs & Repairs Percentage of Time Supplies Requisitions Drugs Requisitions Other Accumulated Cost Subtotal (sum of lines 9 16)* Capital Related Costs Bldgs. & Fixtures Square Feet Capital Related Costs Mov. Equip. Percentage of Time Employee Benefits Salary Administrative and General Accumulated Cost Maint./Repairs Operation Housekeeping Square Feet Medical Education Program Costs Central Services & Supplies Requisitions Pharmacy Requisitions Other Allocated Costs Accumulated Cost Subtotal (sum of lines 17 26)* Laboratory (see instructions) Charges Respiratory Therapy (see instructions) Charges Other (see instructions) Charges Total costs (sum of lines 27 30) 31 * Line 17, c o lumn 1 s ho uld agree with Wo rks he et A, c o lumn 7 fo r line 74 o r line 94 as appro pria te, a nd line 27, c o lumn 1 s ho uld a gre e with Wo rks hee t B, P a rt I, c o lumn 26 fo r line 74 o r line 94 a s a ppro pria te. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4048) Rev

161 12-10 FORM CMS (Cont.) DIRECT AND INDIRECT RENAL DIALYSIS COST ALLOCATION PROVIDER NO.: PERIOD: WORKSHEET I 3 STATISTICAL BASIS FROM TO Check applicable box: [ ] Renal Dialysis Department [ ] Home Program Dialysis CAPITAL AND RELATED COSTS DIRECT PATIENT ROUTINE BUILDING EQUIPMENT CARE SALARY EMPLOYEE MEDICAL ANCILLARY OVERHEAD COMPOSITE PAYMENT SERVICES (SQUARE (% OF RNs OTHERS BENEFITS DRUGS SUPPLIES SERVICES SUB (ACCUM. FEET) TIME) (HOURS) (HOURS) (SALARY) (REQUIST.) (REQUIST.) (CHARGES) TOTAL COST) Total Renal Department Costs 1 MAINTENANCE 2 Hemodialysis 2 3 Intermittent Peritoneal 3 TRAINING 4 Hemodialysis 4 5 Intermittent Peritoneal 5 6 CAPD 6 7 CCDP 7 HOME 8 Hemodialysis 8 9 Intermittent Peritoneal 9 10 CAPD CCDP 11 OTHER BILLABLE SERVICES 12 Inpatient Dialysis Treatments Method II Home Patient EPO ARENESP Other Total Statistical Basis Unit Cost Multiplier (line 1 line 17) 18 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4050) Rev

162 4090 (Cont.) FORM CMS COMPUTATION OF AVERAGE COST PER TREATMENT PROVIDER NO.: PERIOD: WORKSHEET I 4 FOR OUTPATIENT RENAL DIALYSIS FROM TO Check applicable box: [ ] Renal ldialysis i Department t [ ] Home Program Dialysis i Average Cost Total Number Total Cost of Program Number Program Total Average of Total (from Wkst. Treatments of Program Expenses Program Payment Rate Treatments I 2, col. 11) (col. 2 col. 1) Treatments (col. 4 x col. 3) Payment (col. 6 col. 4) Maintenance Hemodialysis 1 2 Maintenance Peritoneal Dialysis 2 3 Training Hemodialysis 3 4 Training Peritoneal Dialysis 4 5 Training Continuous Ambulatory Peritoneal Dialysis 5 6 Training Continuous Cycling Peritoneal Dialysis 6 7 Home Program Hemodialysis 7 8 Home Program Peritoneal Dialysis 8 Patient Weeks Patient Weeks 9 Home Program Continuous Ambulatory Peritoneal Dialysis 9 10 Home Program Continuous Cycling Peritoneal Dialysis Totals (sum of lines 1 8, columns 1 and 4) 11 (sum of lines 1 10, columns 2, 5, and 7) FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4051) Rev. 1

163 4090 (Cont.) FORM CMS CALCULATION OF REIMBURSABLE PROVIDER NO.: PERIOD: WORKSHEET I 5 BAD DEBTS TITLE XVIII PART B FROM TO Description 1 Total expenses related to care of program beneficiaries (see instructions) 1 2 Total payment (from Worksheet I 4, column 6, line 11) 2 3 Deductibles billed to Medicare (Part B) patients 3 4 Coinsurance billed to Medicare (Part B) patients 4 5 Bad debts for deductibles and coinsurance, net of bad debt recoveries Reimbursable bad debts for dual eligible beneficiaries (see instructions) 7 8 Net deductibles and coinsurance billed to Medicare (Part B) patients (sum of lines 3 and 4 less line 5) 8 9 Program payment (line 2 less line 3, times 80 percent) 9 10 Unrecovered from Medicare (Part B) patients (lesser of line 1 or line 2 minus the sum of lines 7 and 8) 10 (if negative, enter zero and do not complete line 11) 11 Reimbursable bad debts (lesser of line 10 or line 5) (transfer to Worksheet E, Part B, line 33) 11 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4052) Rev

164 WS I Series Steps to process WS S-I Series Data: Identify the data to be used: General Ledger Payroll Register Statistics Renal Dialysis Treatment Stats by Modality PSR Split Expenses by type of Expense Must reconcile to WS A line 74 Identify the Statistics by Modality Sort and Subtotal

165 WS J Series (CMHC) Community Mental Health Center (CMHC) services are paid on Cost Reimbursement (for the moment). The WS I Series is designed to identify the cost of CHMC services by Modality, determine the program cost, and final settlement.

166 WS J Series The WS J Series consists of the following worksheets: WS S-6 (CMHC Treatment Staff Statistics) WS J-1 Part 1 (Apportionment t of Costs to the mental Health Modalities) Column 0 must reconcile to WS A (CMHC Cost Center) WS J-1 Part 2 (Allocation Statistics for Cost Apportionment) Each columns statistics should agree to WS B-1 Stats fro the CMHC Cost Center)

167 WS J Series WS J-2 (Determination of Program Costs) WS J-3 (Determination of Settlement) WS J-4 (Identification of Interim Payments and Lump Sum Payments)

168 4090 (Cont.) FORM CMS HOSPITAL BASED COMMUNITY MENTAL HEALTH CENTER ANPROVIDER NO.: PERIOD: WORKSHEET S 6 OTHER OUTPATIENT REHABILITATION FROM PROVIDER STATISTICAL DATA COMPONENT NO.: TO COMMUNITY MENTAL HEALTH & OTHER OUTPATIENT REHABILITATION PROVIDER NUMBER OF EMPLOYEES (FULL TIME EQUIVALENT) Check [ ] CMHC [ ] OOT applicable [ ] CORF [ ] OSP box: [ ] OPT Enter the number of hours in your normal workweek Total Staff Contract (column 1 + column 2) Administrator and Assistant Administrator(s) 1 2 Director(s) and Assistant Director(s) 2 3 Other Administrative Personnel 3 4 Direct Nursing Service 4 5 Nursing Supervisor 5 6 Physical Therapy Service 6 7 Physical Therapy Supervisor 7 8 Occupational Therapy Service 8 9 Occupational Therapy Supervisor 9 10 Speech Pathology Service Speech Pathology Supervisor Medical Social Service Medical Social Service Supervisor Respiratory Therapy Service Respiratory Therapy Supervisor Psychiatric/Psychological Service Psychiatric/Psychological Service Supervisor Other (specify) 18 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE PUBLISHED IN CMS PUB. 15-II, SECTION 4008) Rev. 1

169 4090 (Cont.) FORM CMS ALLOCATION OF GENERAL SERVICE COSTS TO PROVIDER NO.: PERIOD: WORKSHEET J 1, COMMUNITY MENTAL HEALTH CENTERS FROM PART I COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX box: PART I ALLOCATION OF GENERAL SERVICE COSTS TO COMMUNITY MENTAL HEALTH CENTER COST CENTERS NET EXPENSES CAPITAL COMPONENT COST CENTER FOR COST RELATED COSTS ADMINIS MAIN LAUNDRY (omit cents) ALLOCATION BLDGS. & MOVABLE EMPLOYEE SUBTOTAL TRATIVE & TENANCE OPERATION & LINEN (see instru.) FIXTURES EQUIPMENT BENEFITS (cols. 0 4) GENERAL & REPAIRS OF PLANT SERVICE A Administrative and General 1 2 Skilled Nursing Care 2 3 Physical Therapy 3 4 Occupational Therapy 4 5 Speech Pathology 5 6 Medical Social Services 6 7 Respiratory Therapy 7 8 Psychiatric/Psychological Services 8 9 Individual Therapy 9 10 Group Therapy IndividualizedActivity Therapies Family Counseling Diagnostic Services Approved Patient Training & Education Prosthetic and Orthotic Devices Drugs and Biologicals Medical Supplies Mdi Medical lappliances Durable Medical Equipment Rented Durable Medical Equipment Sold All Others Totals (sum of lines 1 21)(1) Unit Cost Multiplier (see instructions) 23 () (1) Columns 0 through h26, line 22 must agree with the corresponding columns of Wkst. B, Part I, lines as appropriate. See instructions. i FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

170 12-10 FORM CMS (Cont.) ALLOCATION OF GENERAL SERVICE COSTS TO PROVIDER NO.: PERIOD: WORKSHEET J 1, COMMUNITY MENTAL HEALTH CENTERS FROM PART II COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX boxes: PART II ALLOCATION OF GENERAL SERVICE COSTS TO COMMUNITY MENTAL HEALTH CENTER COST CENTERS STATISTICAL BASIS CAPITAL RELATED COST ADMINIS MAIN LAUNDRY BLDGS & MOVABLE EMPLOYEE TRATIVE & TENANCE & OPERATION & LINEN CMHC COST CENTER FIXTURES EQUIPMENT BENEFITS GENERAL REPAIRS OF PLANT SERVICE (omit cents) (SQUARE (SQUARE (GROSS RECONCIL (ACCUM. (SQUARE (SQUARE (POUNDS OF FEET) FEET) SALARIES) IATION COST) FEET) FEET) LAUNDRY) A Administrative and General 1 2 Skilled Nursing Care 2 3 Physical Therapy 3 4 Occupational Therapy 4 5 Speech Pathology 5 6 Medical Social Services 6 7 Respiratory Therapy 7 8 Psychiatric/Psychological Services 8 9 Individual Therapy 9 10 Group Therapy Individualized Activity Therapies Family Counseling Diagnostic Services Approved Patient Training & Education Prosthetic and Orthotic Devices Drugs and Biologicals Mdi Medical lsupplies Medical Appliances Durable Medical Equipment Rented Durable Medical Equipment Sold All Others Totals (sum of lines 1 21) Total Cost to be Allocated Unit Cost Multiplier li li (see instructions) i 24 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

171 4090 (Cont.) FORM CMS COMPUTATION OF COMMUNITY MENTAL HEALTH CENTER PROVIDER COSTS PROVIDER NO.: PERIOD: WORKSHEET J 2, FROM PART I COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX boxes: PART I APPORTIONMENT OF CMHC COST CENTERS (From Ratio of Title V Title XVIII Title XIX Wkst. J 1, Total Costs to Title V Component Title XVIII Component Title XIX Component Part I, Component Charges Component Costs (col. 3 Component Costs (col. 3 Component Costs (col. 3 col. 28) Charges (col. 1 col. 2) Charges x col. 4) Charges x col. 6) Charges x col. 8) Administrative and General 1 2 Skilled Nursing Care 2 3 Physical Therapy 3 4 Occupational Therapy 4 5 Speech Pathology 5 6 Medical Social Services 6 7 Respiratory Therapy 7 8 Psychiatric/Psychological Services 8 9 Individual Therapy 9 10 Group Therapy Individualized Activity Therapy Family Counseling Diagnostic Services Approved Patient Training & Education Prosthetic and Orthotic Devices Drugs and Biologicals Medical Supplies Medical Appliances All Others (1) Totals (sum of lines 1 19) 20 (1) Enter amount in column 1 from Worksheet J 1, Part I, column 28, line 21. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev. 1

172 12-10 FORM CMS (Cont.) COMPUTATION OF COMMUNITY MENTAL HEALTH CENTER PROVIDER COSTS PROVIDER NO.: PERIOD: WORKSHEET J 2, FROM PART II COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX boxes: PART II APPORTIONMENT OF COST OF CMHC PROVIDER SERVICES FURNISHED BY SHARED HOSPITAL DEPARTMENTS (From Title V Title XVIII Title XIX Wkst. J 1, Total Ratio of Title V Component Title XVIII Component Title XIX Component Part I, Component Costs to Component costs (col. 3 Component costs (col. 3 Component costs (col. 3 col. 29) Charges Charges (1) Charges (2) x col. 4) Charges (2) x col. 6) Charges (2) x col. 8) Respiratory Therapy Physical Therapy Occupational Therapy Speech Pathology Medical Supplies Charged to Patients Implantable Devices Charged to Patients Drugs Charged to Patients Total (sum of lines 21 28) Total component costs. Add the amount from Part I, line and the amounts from line 28, columns 5, 7, and 9. (3) (1) From Worksheet C, Part I, column 9, lines as appropriate (2) Charges for columns 4, 6, and 8 are obtained from your records. (3) Transfer the amounts on line 28, columns 5, 7, and 9, as appropriate, to Worksheet J 3, line 1. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION ) Rev

173 4090 (Cont.) FORM CMS CALCULATION OF REIMBURSEMENT SETTLEMENT COMMUNITY PROVIDER NO.: PERIOD: WORKSHEET J 3 MENTAL HEALTH CENTER PROVIDER SERVICES FROM COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX boxes: PROGRAM COST 1 Cost of component services (from Worksheet J 2, Part II, line 29) 1 2 PPS payments received excludingoutliers 2 3 Outlier payments 3 4 Primary payer payments 4 5 Total reasonable cost (see instructions) 5 6 Total charges for program services 6 CUSTOMARY CHARGES 7 Aggregate amount actually collected from patients liable for services on a charge basis 7 8 Amount that would have been realized from patients liable for payment for services on a charge 8 basis had such payment been made in accordance with 42 CFR (e) 8 9 Ratio of line 7 to line 8 (not to exceed ) (see instructions) 9 10 Total customary charges (see instructions) Excess of customary charges over reasonable cost (see instructions) Excess of reasonable cost over customary charges (see instructions) 12 COMPUTATION OF REIMBURSEMENT SETTLEMENT 13 Total reasonable cost (from line 5) Part B deductible billed to program patients Net cost (line 13 minus line 14) Excess of reasonable cost over customary charges (from line 12) Subtotal (line 15 minus line 16) percent of costs (80% of line 17) (see instructions) Actual coinsurance billed to program patients (from provider records) Net cost less actual billed coinsurance (line 17 minus line 19) Reimbursable bad debts (from provider records) (see instructions) Reimbursable bad debts for dual eligible beneficiaries (see instructions) Net reimbursable amount (see instructions) Other adjustments (see instructions) (specify) Total cost (line 24 plus or minus line 25) Interim payments (see instructions) Tentative settlement (for contractor use only) Balance due component/program (line 26 minus lines 27 and 28) Protested amounts (nonallowable cost report items in accordance with CMS Pub. 15 II, section 115.2) 30 FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4055) Rev. 1

174 12-10 FORM CMS (Cont.) ANALYSIS OF PAYMENTS TO HOSPITAL BASED COMMUNITY MENTAL HEALTH PROVIDER NO.: PERIOD: WORKSHEET J 4 CENTER FOR SERVICES RENDERED TO PROGRAM BENEFICIARIES FROM COMPONENT NO.: TO Check applicable [ ] Title V [ ] Title XVIII [ ] Title XIX boxes: Part B DESCRIPTION 1 2 mm/dd/yyyy Amount 1 Total interim payments paid to providers 1 2 Interim payments payable on individual bills, either 2 submitted or to be submitted to the intermediary, for services rendered din the cost reporting periods. If none, write "NONE", or enter zero. 3 List separately each retroactive lump sum adjustment amount Program based on subsequent revision of to the interim rate for the Provider cost reporting period. Also show date of each payment If none, write "NONE", Provider or enter zero (1). to Program Subtotal (sum of lines minus sum of lines ) Total interim payments (sum of lines 1, 2, and 3.99) 4 (transfer to Worksheet J 3, line 27) O BE COMPLETED BY INTERMEDIARY 5 List separately each tentative Program settlement payment after desk review. to Also show date of each payment. Provider If none, write "NONE," Provider or enter zero (1). to Program Subtotal (sum of lines minus sum of lines ) Determine net settlement amount Program (balance due) based on the cost to report (see instructions). (1) Provider Provider to Program Total Medicare liability (see instructions) 7 8 Name of Contractor Contractor Number (Month, Day, Year) 8 (1) On lines 3, 5, and 6, where an amount is due provider to program, show the amount and date on which you agree to the amount of repayment, even though the total repayment is not accomplished until a later date. FORM CMS (12/2010) (INSTRUCTIONS FOR THIS WORKSHEET ARE P UBLISHED IN CMS P UB. 15-II, SECTION 4056) Rev

175 WS J Series Steps to process WS S-J Series Data: Identify the data to be used: General Ledger Payroll Register Statistics CHMC Treatment Stats by Modality PSR Split Expenses by type of Expense Must reconcile to WS A (CMHC Cost Center) Identify the Statistics by Modality Sort and Subtotal

176 WS M Series (Rural Health Clinic) Rural Health Clinics Payment is based on an allinclusive payment methodology, subject to a maximum payment per visit and annual reconciliation The per-visit limit is established by Congress and update annually based on percentage change in the MEI (Medicare Economic Index) RHCs also receive cost-based reimbursement for a defined set of core physician and certain non-physician outpatient services. The per-visit limit does not apply to hospital based RHCs that are an integral and subordinate part of a hospital with fewer than 50 beds. Laboratory tests are paid separately.

177 WS M Series The WS M Series consists of the following Worksheets: WS S-8 Statistical and Operational Factors Includes such data as clinic name and address, sources of federal funding, hours of operation, other general questions and list of medical providers and numbers. WS M-1 Analysis of Hospital-based RHC Costs Total Expenses on M-1 must reconcile to WS A line 88.XX (Individual Specific RHC) including A-6 Reclassifications and A-8 Adjustments. Categories of WS M-1 Expenses Facility Health Care Staff Costs (Lines 1-10) 10) Staff Expense by Type of Position Costs Under Agreement (Lines 11-14) Contract Labor by Type of Position/Arrangement Other Health Care Costs (Lines 15-22) Med Supplies, Transportation, Malpractice, Depreciation, Other, etc. Costs other than RHC /FQHC Services (Lines 23-28) Services other than RHC/FQHC Facility Overhead (Line 29-31) Facility and Administrative Costs

178 WS M Series The WS M Series consists of the following Worksheets: WS M-2 (Allocation of Overhead to RHC Services) Line 1-9 From Hospital records need to input FTEs in RHC by and total number of visits by position. From regulations require the input of productivity standards Line No input required as this is the cost report flow of the Determination of Allowable Costs Applicable to RHC/FQHC Services

179 WS M Series WS M-3 (Calculation of RHC Reimbursement Settlement) Line 1-7 No input required Line 8-9 Input Per Visit Payment Limit and Rate for Program Covered Vistits If applicable input the per visit payment limit as provided by your FI Line Medicare Settlement and recording of PSR data and bad debts. WS M-4 (Computation of Pneumococcal and Influenza Vaccine Costs) WS M-5 (Analysis of Payments to RHC for Services Rendered) Net Reimbursement and Lump Sum from the PSR or your FI