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.

Constantly Changing: Departments and Organizational Structures

HeraclitusHeraclitus was an ancient Greek philosopher who lived about 150 years before Aristotle and the quote “The only thing that is constant is change” is attributed to him. If we use Heraclitus’s philosophy as a guide, change is not only something we must accept, but it’s actually something to celebrate. Heraclitus saw the world as a system in flux, but in his view that’s what keeps the world the same, in a sense.

In a modern setting, the same can be said of health care as new drugs, treatments, and technology are constantly being introduced. And as hospitals and other health care providers embrace these innovations, the result is often new departments and organizational structures.

Tip #7

All new material accounts/departments should be identified, reviewed and discussed to ensure proper reporting (Pub 15-1, §2302.8)

Further guidance is available on the Centers for Medicare and Medicaid Services (CMS) website:

Provider Reimbursement Manual 15-1

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