HFS News & Information

The Home Office Cost Statement, Form CMS-287-22 Transmittal 1 was published by CMS, on October 28, 2022. Transmittal 1 is effective for cost reporting periods beginning on or after October 1, 2022.

This Transmittal implements an electronic reporting requirement for the home office cost statement and updates the forms to more closely reflect other Medicare form sets. Major changes include:

• Designated Schedule S, Part I as Cost Statement Status and added data elements identifying the status, and added the electronic signature statement to the S, Part II Certification.
• Designated Schedule S-1, Part I as Home Office Data to capture identification information applicable to the home office/chain organization (HO/CO); designated key officer data as Part II.  This data was previously reported on Schedule A, Part I.
• Designated Schedule S-2, Parts I, II, and III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, to list the components of the HO/CO. This data was previously reported on Schedule A, Parts III-V.
• Designated Schedule A as the updated Reclassification and Adjustment of Trial Balance of Expenses. This data was previously reported on Schedule B.
• Designated Schedule A-6 as the updated Reclassifications of Expenses. This data was previously reported on Schedule B-1.
• Designated Schedule A-7, Part I as Analysis of Changes in Capital Asset Balances; designated Part II as Reconciliation of Capital Cost Centers. This data was previously reported on Schedule B-2.
• Designated Schedule A-8 as the updated Adjustments to Expenses. This data was previously reported on Schedule C.
• Designated Schedule A-8-1 Part I as Adjustments Required as a Result of Transactions with Related Organizations and/or Home Office/Chain Organizations; Designated Part II as Interrelationship of Home Office/Chain Organization to Related Organizations. This data was previously reported on Schedule D.
• Designated Schedule B, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for direct allocations of capital related costs. This data was previously reported on Schedule E.
• Designated Schedule B-1, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for direct allocations of non-capital related costs. This data was previously reported on Schedule E-1.
• Designated Schedule C, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for function allocations of capital related costs. This data was previously reported on Schedule F, Part I.
• Designated Schedule C-1, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for statistics to functionally allocate capital related costs. This data was previously reported on Schedule F, Part II.
• Designated Schedule D, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for function allocations of non-capital related costs. This data was previously reported on Schedule F-1, Part I.
• Designated Schedule D-1, Parts I, II, & III as Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively, for statistics to functionally allocate non-capital related costs. This data was previously reported on Schedule F-1, Part II.
• Designated Schedule E for the allocation of pooled costs for the double allocation method. This data was previously reported on Schedule G, Part I.
• Designated Schedule E-1, Parts I, II, & III for the allocation of pooled costs to Healthcare Components, Non-Healthcare Components, and Region/Division Components, respectively. This data was previously reported on Schedule G, Part II.
• Added the Schedule F, Parts I, II, and III, to summarize capital related costs by healthcare components, non-healthcare components, and region/division components, respectively.
• Added the Schedule F-1, Parts I, II, and III, to summarize non-capital related costs by healthcare components, non-healthcare components, and region/division components, respectively.
• Designated Schedule G as the updated Balance Sheet. This data was previously reported on Schedule J.
• Designated Schedule G-1 as the updated Statement of Revenues and Expenses. This data was previously reported on Schedule I.

CMS has started the test/approval process and HFS expects T1 software to be approved and available for use soon.  The published T-1 transmittal can be found at the link below:

https://www.hfssoft.com/doc/R1P248.zip

In accordance with the Paperwork Reduction Act (PRA) of 1995, the Centers for Medicare & Medicaid Services (CMS) published a notice in the Federal Register dated June 22, 2022  regarding a proposed revision to the Hospital and Health Care Complex Cost Report (proposed Form CMS-2552-10).   Links to the Federal Register notice and PRA posting are below and comments must be received by July 22, 2022.  Instructions for providing comments are included in the Federal Register notice and a summary of the proposed changes is contained in the Supporting Statement contained within the PRA notice.

Federal Register Notice

Published PRA Notice

CMS published a preliminary Public Use File (PUF) for the FY 2024 wage Index May 23, 2022. This file reflects the Worksheet S-3, Parts II and III wage data from cost reports for Fiscal Year (FY) 2020 (FY Beginning from 10/1/19 to 9/30/2020).
The following file has been created and can be downloaded and used with the Wage Index Verification Tool for the Federal Fiscal Year 2024, Preliminary PUF:

FY_2024_Prelim_S3 wage tab_20220523.csv

CMS has released the final FY 2023 wage index and occupational mix data PUFs on CMS Web page. Hospitals will have approximately 1 month to verify their data and submit correction requests to both CMS and their MAC to correct errors due to CMS or MAC mishandling of the final wage and occupational mix data.

https://www.hfssoft.com/doc/FY23_April_PUF.20220429.S-3 Data PUF.csv

CMS published a Public Use File (PUF) for the FY 2023 wage Index January 28, 2022. This file reflects the Worksheet S-3, Parts II and III wage data from cost reports for Fiscal Year (FY) 2019 (FY Beginning from 10/1/18 to 9/30/2019).

The following file has been created and can be downloaded and used with the Wage Index Verification Tool for the Federal Fiscal Year 2023, PUF. Note, February 15, 2022 is the deadline for hospitals to submit requests (including supporting documentation) for: 1) corrections to errors in the January PUFs due to CMS or MAC mishandling of the wage index data, or 2) revisions of desk review adjustments to their wage index data as included in the January PUFs (and to provide documentation to support the request). MACs must receive the requests and supporting documentation by this date.

FY23_Jan_PUF.20220128.S-3 Data PUF.csv

CMS issued CR12407 on October 21, 2021 to update the N&AH MA payment rates for 2019 which changed the E-4 reduction amount to 4.07%.  The full Change Request is available at: https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Transmittals/r11041otn

CMS released a revised final FY 2022 wage index and occupational mix data PUFs on the CMS Web page, August 3, 2021. This file reflects provider correction requests due to CMS or MAC mishandling of the final wage and occupational mix data.

The following file has been created and can be downloaded and used with the Wage Index Verification Tool for the final Federal Fiscal Year 2018 wage index data.

FY_2022_Final_S3_PUF.csv

CMS published a preliminary Public Use File (PUF) for the FY 2023 wage Index May 24, 2021. This file reflects the Worksheet S-3, Parts II and III wage data from cost reports for Fiscal Year (FY) 2019 (FY Beginning from 10/1/18 to 9/30/2019).

The following file has been created and can be downloaded and used with the Wage Index Verification Tool for the Federal Fiscal Year 2023, Preliminary PUF:

FY_2023_Prelim_S3 wage tab_05182020.csv

CMS published a Public Use File (PUF) for the FY 2022 wage Index January 29, 2021. This file reflects the Worksheet S-3, Parts II and III wage data from cost reports for Fiscal Year (FY) 2018 (FY Beginning from 10/1/17 to 9/30/2018).

The following file has been created and can be downloaded and used with the Wage Index Verification Tool for the Federal Fiscal Year 2022, PUF. Note, February 16, 2021 is the deadline for hospitals to submit requests (including supporting documentation) for: 1) corrections to errors in the January PUFs due to CMS or MAC mishandling of the wage index data, or 2) revisions of desk review adjustments to their wage index data as included in the January PUFs (and to provide documentation to support the request). MACs must receive the requests and supporting documentation by this date.

https://www.hfssoft.com/doc/FY_2022_January_29_2021_S3_Data_PUF.csv

We have been informed that CMS updated their COVID-19 Frequently Asked Questions (FAQs) on 1/7/2021 and revised the Cost Reporting Question #1 (on page 105) to grant providers and additional 60 day filing extension “For any cost reporting period not previously identified and ending on a date falling in the period of March 1, 2020 through December 31, 2020”.

The current full FAQ listing can be found at the below link:

https://www.cms.gov/files/document/03092020-covid-19-faqs-508.pdf