The current year instructions supersede the HURM where there are differences between the two. The 403 allocates costs to the inpatient and outpatient cost centers. The step-down method allocates overhead costs such as capital, fringe benefits, and administrative and general, etc. Therefore, certain overhead departments absorb costs from other overhead departments from which they receive services. The 403 is also used for policy development, monitoring and informational purposes.
Public payers utilize the data in pricing policy and program design.
Private sector purchasers, health plans, and providers use the data to improve value. It is used to assist the administration and legislative policy makers in developing and evaluating policy initiatives and monitoring the hospital industry. Filed Data versus Reviewed Data Annually, the Division receives a cost report from each hospital. The Division then performs a limited desk review of each hospital's 403. These desk reviews are made pursuant to a specific desk review program.