Have 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!
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:
Questions? Please contact Marie White at 612.253.6546 or firstname.lastname@example.org.