Provider-Based Hospice Medicare Cost Report Schedules to Change
The Centers for Medicare & Medicaid Services (CMS) has released Medicare cost report form changes for hospice schedules related to skilled nursing facility-based (Form CMS-2540), home health agency-based (Form CMS-1728) and hospital-based (Form CMS-2552) hospices.
These updated schedules are effective for cost reporting periods beginning on or after October 1, 2015. Therefore, these new cost report forms should be used for all full fiscal years ending on or after September 30, 2016. CMS modified the provider-based hospice forms to reflect the changes made to the free-standing hospice cost report form (Form CMS-1984), which became effective for cost reporting periods beginning on or after October 1, 2014. The most recent free-standing hospice transmittal can be viewed here. All of these updates result from the Patient Protection and Affordable Care Act and will aid CMS in hospice payment reform decision making.
All revisions for the provider-based hospice schedules and instructions are now finalized, and changes are consistent with those made to the free-standing hospice cost report forms. Click on these transmittals to learn more:
- Skilled nursing facility – Chapter 41, Form CMS-2540-10 issued August 19, 2016
- Home health agency – Chapter 32, Form CMS-1728-94 issued October 7, 2016
- Hospital – Chapter 40, Form CMS-2552-10 issued November 18, 2016
The revised provider-based forms introduce a new Worksheet O series, which brings significant changes, including:
- Increased number of general cost centers with more complex allocation methods
- Increased number of direct cost centers
- Direct costs identified by the four hospice levels of care
These changes will require all affected provider types to maintain more detailed hospice financial records. As a result, providers should consider revising their hospice chart of accounts and other record keeping to capture the required level of detail.
Each affected provider may have additional Medicare cost report form changes beyond these hospice schedule changes; the above transmittals should be reviewed for these changes as well.
Contact your BKD advisor for more information.