If you run a home health agency, you already know that the administrative side of things can get complicated. Maybe you’re just starting out with your agency, or maybe you’re still pulling things together in the planning stage. One thing you will need to keep in mind when you round out your first fiscal year is Medicare cost reporting.
But what exactly is Medicare cost reporting, and how do you do it? It can seem like another difficult clerical task on your plate, but here is a quick run-through on how it works and how you can get it done hassle-free.
What is Medicare Cost Reporting?
Medicare cost reporting simply reports the expenses of healthcare organizations to determine if they are eligible for Medicare reimbursement. The reports are required for facilities like home health agencies, hospice agencies, home offices, skilled nursing homes, and more.
So, by filing this report effectively and on time, your agency will receive its well-deserved reimbursement. Let’s dig a little deeper to see how.
The Details
Medicare cost reporting is regulated by Centers for Medicare and Medicaid Services (CMS). Any software that is used to complete Medicare cost reports must be approved by CMS to ensure accuracy. The report must be submitted as an electronic cost report (ECR), along with any supporting documentation including a signature sheet. The supporting financial documents will be determined by your Medicare Administrative Coordinator. These documents must be submitted no later than five months after the end of the fiscal year.
The cost report will detail various data points such as revenue, expenses, wages, possible debt, medical education costs, DSH payments, and more depending on your specific facility. You can find the proper forms for your agency here.
Why Does Cost Reporting Matter?
Unless your home health or hospice agency is a high-end organization that serves clients who pay with private funds, Medicare reimbursements are likely a crucial part of your annual revenue. It’s important to file your cost reports on time so that your Medicare reimbursement is not withheld from your facility. This can mean a loss of hard-earned funds, adversely affecting your business.
In fact, if your cost reports consistently defy regulations or are turned in late, you may risk losing Medicare reimbursement permanently. That’s why it’s important to get it done right.
You have a lot on your plate running your home health or hospice agency. Wouldn’t it be great if someone else could handle some of the admin tasks so that you could focus on caring for patients? Luckily, Forte can help with that. Our financial professionals know exactly how to navigate healthcare reporting, especially when it comes to Medicare cost reporting. Let us ensure your Medicare reimbursement today.
