Section 448.1 - Specifications for cost reporting periods beginning in 1980

Section 448.1 Specifications for cost reporting periods beginning in 1980.

(a) The cost allocation statistics and required Standard Units of Measure, except inpatient days, may be estimated using statistical sampling instead of taking complete counts. Statistical sampling is most appropriate for those SUM's and cost allocation statistics which can be obtained from a physical record of the transaction or procedure. For example, the laundry and linen cost center might keep a log of the number of pounds processed daily. At the end of the year or at convenient intervals through the year, a random sample of days can be taken from the log and an estimate of the total pounds processed for the year can be made. It may also be possible to use sampling techniques for those transactions for which no record is kept. In this case, however, the procedures are likely to be more complex and costly.

(b) If statistical sampling is to be used, it will be necessary to adhere strictly to the appropriate procedures. Subsequent audits may be conducted by fiscal intermediaries. At some time in the future, the Health Care Financing Administration (HCFA) will publish procedures that will have wide applicability to a variety of items and situations. If the published procedures are not applicable or it is desired to use alternative methods, the hospital must be prepared to demonstrate that its plan adheres to the principle of scientific statistical sampling.

(c) Until such time as the Health Care Financing Administration (HCFA) publishes the necessary procedures mentioned above, the following methodology must be used:

(1) A minimum of eight calendar weeks will be selected each year for the accumulation of data.

(2) These eight weeks will be representative of the full year. In order to achieve this, the hospital will select a two-week block (14 consecutive days) within each fiscal quarter for the collection of data.

(3) The same two-week block need not be used for all statistics.

(4) During the testing period, actual counting, weighting, etc. will be done for all shifts involved in the particular area.

(5) Periods of "unusual" circumstances should be avoided as test weeks. The principle of representative samples is the ultimate goal.
 

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