The allocations should be supported by adequate documentation and be in a form that permits validation by the Intermediary and Carrier. Allocations shown in the agreement should be adequately supported by actual data accumulation and maintained in an auditable format. The agreements and support are to be retained four years following the provider s fiscal year end. Providers are encouraged to retain this information beyond the four years if a Provider Reimbursement Review Board appeal is filed. 15-1 2183.2B notes that providers must allocate physician cost in proportion to the percentage of the total time that is spent in furnishing each category of services.
Costs are to be allocated among services to provider, patients, and non-reimbursable areas.
Time studies will be considered as acceptable documentation for the allocation of a physician s time. The selected weeks per quarter should be different months of the quarter and different weeks of the months from those chosen for a previous period. The time study must be contemporaneous with the costs to be allocated. If a provider wishes to use a different type of study or documentation for allocation agreements, prior approval from the Intermediary must be obtained. We suggest a narrative be written by the provider on the activities that are included in the time study.