Title: Section 86-1.3 - Uniform system of accounting and reporting
86-1.3 Uniform system of accounting and reporting. (a) Medical facilities shall maintain their records in accordance with:
(1) Accounting and reporting. Hospitals shall maintain their accounts and records in accordance with the Healthcare Financial Management Association's (HFMA)
Introduction to Hospital Accounting, 5th edition, written by Michael Nowicki and published by the Health Administration Press. Such accounts and records are to be maintained on an accrual basis except where an alternate system is mandated by law. Hospitals shall also submit to the department or its authorized agent a certified Institutional Cost Report within 5 months after the close of each hospital's fiscal year. The data shall be reported as follows:
(i) In accordance with the policies and instructions in the following:
The Financial Management of Hospitals and Healthcare Organizations,4th edition, written by Michael Nowicki and published by the Health Administration Press.
(b) HFMA, Glossary of Terms.
Health Care Entities – American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guidepublished by the AICPA; and
(d) Medicare Provider Reimbursement Manual, Part 1.
(ii) All government subsidies shall be reported on the income statement of the Institutional Cost Report on the line provided and such amounts shall be itemized on the notes to financial statements by payor and purpose. Such grants shall not be used to reduce allowances as indicated in the American Institute of Certified Public Accountants manual,
Audit and Accounting Guide.
(iii) Investments, other than donations, shall be reported on the balance sheet of the Institutional Cost Report at cost. The notes to the financial statements shall describe the assets and indicate the quoted market value and cost for each category of investment.
(iv) Fixed assets, other than donations, shall be reported on the balance sheet of the Institutional Cost Report at cost.
(v) Discounts, allowances and bad debts shall be reported and broken out on the Institutional Cost Report by hospital service.
(vi) Copies of HFMA's
Introduction to Hospital Accountingand
The Financial Management of Hospitals and Healthcare Organizationsare available from the Health Administration Press, American College of Healthcare Executives, One North Franklin, Suite 1700, Chicago, IL 60606-3529 and at
, respectively. Copies of HFMA's Glossary of Terms are available from HFMA, 2 Westbrook Corporate Center, Suite 700, Westchester, IL 60154 and at
. Copies of
Health Care Entities – AICPA Audit and Accounting Guideare available from the AICPA, CPA2Biz Corporate Headquarters, 100 Broadway, 6th Floor, New York, NY 10005 and at http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Industryspec.... In addition, a copy of each publication is available for inspection at the offices of the Bureau of Primary and Acute Care Reimbursement, New York State Department of Health, Corning Tower, Empire State Plaza, Albany, NY 12237; and
(2) Article 8 of Subchapter A of Chapter V of this Title.
(b) Failure of a medical facility to file the reports required pursuant to this section will subject the medical facility to a rate reduction as set forth in section 86-1.2(c) of this Subpart.
(c) For purposes of rate setting, medical facilities shall submit to the department, or its authorized agent, a certified Institutional Cost Report in accordance with the policies and instructions as set forth in subdivision (a) of this section.
(d) The Institutional Cost Report and supplementary schedule form as adopted by the department shall be used to report financial and statistical data in order to establish rates of payment for title 19 providers.
VOLUME A-2 (Title 10)