What does a Post Office and a Health Care Organization have in common?

Man sending a letter

The postal service faces what seems to be a monumental task each day. It needs to take piles and piles of mail, identify where each one should go and sort them carefully so they can be sent to the right post office for delivery. How do they make this system work? They have zip codes. These codes help route the mail to the proper local office, regardless of where it originated.

Your coding needs to be properly identified and sorted, too. In health care for the cost report, our zip code equivalent is the Cost Center. Each service is tied to a specific Cost Center, regardless of the different elements of a service. All services need to roll-up to one overall Cost Center when coding.

Tip #21:

If adding a “non-standard” cost center, be sure to select the appropriate cost center code (Pub. 15-2, §Section 4095).

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website.

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.

Miscellaneous Expenses: Almost Like the Honor System at a Country Store

Rural Store Market Building in Country Small Town AmericaHave you ever shopped at a country store that operates on the honor system to pick-up miscellaneous produce? The Merriam-Webster Dictionary defines miscellaneous as: “consisting of diverse things or members.” In accounting terminology, the common usage is miscellaneous expense and is defined as: “An income statement account for expense items that are too insignificant to have their own separate general ledger accounts.”

CMS provides some guidance in identifying the types of miscellaneous expenses and other income that is required to be offset. Just like at a store on the honor system, it is your responsibility for reviewing these amounts and ensuring they are documented accordingly—only CMS will retroactively hold you accountable if you misstate amounts on your cost report.

A helpful tip to remember is if the income is not related to care of hospital patients, then odds are, it should be offset!

Tip #20:

Miscellaneous revenue or income should be offset via Worksheet A-8 (Pub. 15-2, Section 4016).

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Provider Reimbursement Manual 15-2, Chapter 40

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.