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What is the step down method of the Medicare cost report?

The basis of the cost allocation in the Medicare cost report is the step-down method. The general ledger departments are grouped into Medicare-defined cost centers. Expenses are offset by other operating revenues to exclude services unrelated to patient care.

What is the step down method of cost?

The step-down method is also called the sequential method. This method allocates the costs of some service departments to other service departments, but once a service departments costs have been allocated, no subsequent costs are allocated back to it.

What is an NPR for the Medicare cost report?

Once a provider receives a Notice of Program Reimbursement (NPR) from a cost report settlement, it has a right to redress audited adjustment related issues through the cost report appeals process either as an individual or as a member of a group of providers before the Provider Reimbursement Review board (PRRB).

What is the step down method in healthcare?

By implementing step-down allocation, the hospital can allocate a portion of the radiology departments expenses to the outpatient clinics and inpatient wards, providing a more accurate cost allocation for each department.

What is a Medicare cost report?

A Medicare Cost Report (MCR) is a financial account submitted from Medicare-certified entities, such as skilled nursing facilities, hospitals or hospices, to a Medicare Administrative Contractor (MAC). Each entity updates its report at the end of its fiscal year, and MCRs publish quarterly.

What is the step down approach?

In a stepped-down approach, patients begin with a more intensive treatment and are stepped down to a less intensive treatment based on achieving treatment goals.

Where is the DSH percentage on the Medicare cost report?

Line 24 days are used to calculate the DSH percentage on WORKSHEET E part A, line 31(L, Part I, Line 8). If no days on S-2 part I, line 24, no DSH Medicaid percentage calculation. Similarly, the days on S-2 part I, line 25 are used for the LIP calculation on E-3 part III, line 3.

What is the step cost method?

Step costs, also called stair-step costs, are costs that do not change in direct proportion to increasing levels of activity. In other words, step costs are constant at a certain activity level but increase or decrease when an activity threshold is met.

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