Home > Cost Report News, General Information, Hospitals > CMS issues Transmittal 5 to the Provider Cost Reporting Forms and Instructions, Chapter 40, Form CMS-2552-10

CMS issues Transmittal 5 to the Provider Cost Reporting Forms and Instructions, Chapter 40, Form CMS-2552-10

On Friday, March 28th, 2014, CMS issued Transmittal number 5 to the Provider Cost Reporting Forms and Instructions, Chapter 40, Form CMS-2552-10.  Transmittal 5 is effective for cost reporting periods overlapping or beginning on or after October 1, 2013.

Major Medicare provisions incorporated by Transmittal 5 include:

  • Implementation of Implement of 75% reduction to traditional DSH payments and calculation of Uncompensated Care Payments, in accordance with Section 333 of the Affordable Care Act.
  • Incorporation of Model 4 bundled payments for care improvement (BPCI) initiative paid outside of the bundled payment in accordance with ACA 2010, Section 3023.
  • Update of the low income patient (LIP) adjustment factor and update of the teaching adjustment factor.
  • Inclusion of Medicare labor and delivery days in the calculation of the Medicare patient load ratio used to apportion direct graduate medical education payments in accordance with the Federal Fiscal Year (FFY) 2014 IPPS final rule.

Transmittal 5 also includes two minor clarifications with retroactive application:

  • Clarification to instructions for lines 71 and 72, medical supplies charged to patients and implantable devices charged to patients, respectively.
  • Addition of  line 39.98 to reflect partial or full credits received from manufacturers for replaced devices

HFS has summited a test case for transmittal 5 to CMS and anticipates approval in the near future.  Once approved, HFS will make the update available to users of the software.

In addition, HFS will be hosting two WebEx sessions on the Transmittal 5 changes.  Both WebEx sessions will be held at 11:00 PST on April 1st and 3rd 2014.  Information regarding the sessions will be distributed to all hospital software users.

If you have any questions, please contact Eric Swanson at eric@hfssoft.com.

  1. Julie L Holly
    April 1st, 2014 at 14:12 | #1

    Would it be possible to have another webinar on these changes in middle of month – most reimbursement associates are likely in month end/quarter close during April 1-3rd…..thank you!

  2. April 1st, 2014 at 15:16 | #2

    The webinar was recorded and will be available shortly on the web site under “Events/Recorded Session.” Unfortunately we can not issue CETs for recorded sessions. Let me know if a recorded session will work for you.

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