How Timely Cost Report Submission Saves You Big 

The report of costs filed with CMS is more than just another bureaucratic exercise needed to stay in compliance. Missing the deadline or filing incorrect information for a particular year would result in dire financial consequences. Thus, let's analyze cost report submission and why it is essential to you.

What Is Cost Report Submission?

A cost report is a report that Medicare-approved healthcare facilities are required to file annually. It indicates the amount of money spent by the provider and how much of the expenses are tied to Medicare-covered patient care.

The following facilities are required to file a cost report:

• Hospitals

• Skilled Nursing Facilities (SNFs)

• Home Health Agencies

• Hospices

• Rural Health Clinics

Every provider has to submit this report to CMS to see if they have been overpaid or underpaid by Medicare. The cost report from CMS includes extensive financial and statistical information.

Why is Cost Report Submission Important?

Delinquent or improperly processed cost report submissions can result in payment delays or even loss of funds. Timely and precise submissions are required by CMS in order to continue payments smoothly.

Here's why submitting your report is essential:

• Avoid Delay in Payments: CMS will delay making future payments if the report is not filed in time.

• Remain Compliant: Not filing a cost report might risk losing your Medicare certification.

• Accept Reimbursements: Prompt reporting ensures you are reimbursed for services already rendered.

• Avoid Penalties: Filing late or wrong information can be costly in terms of penalties or would even invite an audit.

What Is Involved in This Process?

Filing a CMS cost report takes data on expenses, revenues, patient days, work hours, and other statistics. The data is typically obtained from:

• General ledgers

• Payroll records

• Patient billing information

• Medicare and Medicaid logs

The data is then assembled into the necessary forms and schedules—each of which varies by facility type.

• Data Collection

• Report Preparation

• Internal Review

• Electronic Filing using CMS-approved software

• Certification by an Authorized Official

When Should You File the Report?

The cost report is required five months following the end of your facility's fiscal year. For example, if you end your fiscal year on December 31st, your report must be submitted by May 31st of the subsequent year.

Late submission may result in suspension of Medicare payments. Get ready beforehand and start collecting your data early.

Tips for Smoother Cost Report Filing

• Begin Early: Don't wait until the final month to get started.

• Keep Clean Records: Have a neat general ledger and supporting documents.

• Use Expert Assistance: Experts who understand CMS regulations can save time and avoid errors.

• Double-check your Math: Use consistency so that inconsistencies won't cause audits.

• File Electronically: CMS now expects electronic filing through its E-Filing system.

Cost report filing isn't something to check off your list—it's an essential aspect of remaining in business if you're a Medicare-certified provider. When you understand the process and prepare ahead of time, you safeguard your funding and stay compliant.