reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 1 - GENERAL PROVISIONS › Section 8:31B-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this chapter, shall have
				  the following meanings unless the context clearly indicates otherwise.
"Adjusted admissions" means inpatient admissions increased to
				  reflect outpatient activity and is calculated by admissions multiplied by total
				  gross revenue divided by inpatient gross revenue.
"Audited Current Cost Base" means the current cost base of the
				  hospital, as adjusted as a result of audits conducted by the Department and/or
				  acceptance by the Department of adjustments initiated by the hospital, in addition
				  to the adjustments.
"Current Cost Base" means the actual costs and revenues of the
				  hospital as identified in the Financial Elements in the reporting period, as
				  adjusted by the Department for completeness and/or mathematical accuracy.
"Department" means the Department of Health.
"Financial elements" means those items of revenue, expense, and
				  other data defined in N.J.A.C. 8:31B-4for reporting to the Department .
"Hospital" means each general hospital and each specialty heart
				  hospital that is licensed in accordance with N.J.A.C. 8:43G.
"Neonate" means a newborn less than 29 days of age.
"Reporting Period" means the most recent calendar or fiscal year
				  prior to the June 30th submission deadline for the hospital's current cost base
				  reports.
"Reporting Year" means the year in which current financial and
				  statistical data is being reported.
"Uniform Bill--Patient Summary" (also referred to as the National
				  Uniform Bill, the UB-04, or the CMS 1450) means a common billing and reporting form
				  used by the hospital for each inpatient (see N.J.A.C. 8:31B-2).
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to provide
				the basis for a single patient data reporting system to satisfy the health planning
				requirements of the Health Care Reform Act of 1992 (P. L. 1992, c. 160). The
				subchapter incorporates herein by reference the National Uniform Bill (UB-04, CMS
				1450), as amended and supplemented, as the common hospital billing format for all
				payers. The data elements and design of the form have been determined by the
				National Uniform Billing Committee (NUBC). The NUBC includes representatives of the
				Federal Government, major payers, and hospital associations. The NUBC is a
				Designated Standards Maintenance Organization (DSMO) in accordance with the Health
				Insurance Portability and Accountability Act of 1996,
				Public Law
				104-191 (HIPAA), as adopted by the United States
				Congress. The Uniform Bill shall be transmitted electronically according to the
				HIPAA-compatible Health Care Service: Data Reporting 837 Version 5010 format,
				incorporated herein by reference, as amended and supplemented. The HIPAA-compatible
				Health Care Service: Data Reporting 837 Version 5010 format is developed and
				maintained by the DSMO, Accredited Standards Committee X12 (ASC X12) of the American
				National Standards Institute (ANSI). The UB-04, as amended and supplemented, can be
				obtained from the National Uniform Billing Committee in care of the American
				Hospital Association, 155 North Wacker Drive, Suite 400, Chicago, IL 60606,
				telephone (312) 422-3397, telefacsimile (312) 422-4526, website:
http://www.nubc.org
. The HIPAA-compatible
				Health Care Service: Data Reporting 837 Version 5010 electronic format can be
				obtained from the Washington Publishing Company, 2107 Elliott Avenue, Suite 305,
				Seattle, WA 98121, telephone (425) 562-2245, telefacsimile (775) 239-2061, website
http://www.wpc-edi.com
.
(b) This subchapter will continue to allow
				hospitals to:
1. Satisfy Department reporting
				requirements for patient-level clinical and financial information;
2. Allow common and consistent reporting of
				revenues for services related to patient care; and
3. Promote uniformity and accuracy of patient data
				reporting. Confidentiality of individual patients and physicians shall be maintained
				in fulfilling the above purposes.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.2 - Implementation

Current through Register Vol. 56, No. 14, July 15, 2024
Beginning January 1, 1981,
				  N.J.A.C.
				  8:31B-2.1, the rule on hospital reporting of
				  Uniform Bill--Patient Summaries, has been used as a common billing and reporting
				  mechanism for each inpatient discharged from, and ambulatory same-day surgery
				  outpatient treated in, a hospital. As of December 1, 2003, this rule will also apply
				  to emergency department outpatients.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.3 - Billing form

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The UB is a
				multi-part form set. Detailed specifications are included with the UB completion
				guidelines.
(b) The form is designed to
				be typed or computer printed. It will be available as unit sets or in a printed
				version. The number of copies in each form set will be determined by the hospital
				according to its planned use of the forms.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.4 - Guidelines for completion of the patient billing and abstract form

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Procedural
				guidelines for completing the patient billing and abstract form follows:
1. Guidelines for completing the billing form have
				been developed by the NUBC for Medicare, Medicaid, TRICARE, and commercial
				insurers.
2. Specific instructions for
				Blue Cross, Medicaid, and other payers will be provided by those payers.
3. Additional data elements required for the
				Department by this rule are described in detail by an addendum to the National
				Uniform Bill Manual. Note: The addendum consists of instructions for filling out the
				new, Federally mandated form; copies of the addendum can be obtained from the
				Department.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.5 - Health data submissions to the Department

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A data intermediary
				shall be selected as follows:
1. A data
				intermediary is the data processor approved by the Department responsible for
				collecting, editing, generating selected reports, and submitting the UB data to the
				Department.
2. A single data
				intermediary shall be chosen and shall be responsible for all patients regardless of
				payor class. In the event that it becomes necessary to approve additional data
				processors, the Department will promulgate an approved list of data
				processors.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 2 - HOSPITAL REPORTING OF UNIFORM BILL DATA (INPATIENT, SAME-DAY SURGERY AND EMERGENCY DEPARTMENT OUTPATIENT) › Section 8:31B-2.6 - Reserved

Current through Register Vol. 56, No. 14, July 15, 2024
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.1 - Statement of purpose

Current through Register Vol. 56, No. 14, July 15, 2024
The following financial monitoring and reporting rules in
				  conjunction with Financial Elements (N.J.A.C. 8:31B-4 ), the Uniform Cost Reporting
				  (N.J.A.C. 8:31A-5.5 ) and the Rules on Hospital Reporting of Uniform Bill--Patient
				  Summaries regulations (N.J.A.C. 8:31B-2 ), constitute the minimum necessary steps
				  for implementing the Health Care Facilities Planning Act, P.L. 1971, c.136 as
				  amended by P.L. 1978, c.83; P.L. 1991, c.187 and P.L. 1992, c.160. These regulations
				  should provide an environment in which to move towards the objectives of an accurate
				  system of monitoring and reporting. This system meets the purpose of the law, to
				  insure the citizens of New Jersey economical provision of necessary and appropriate
				  medical services of the highest quality.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.3 - Uniform reporting: current costs and other financial data; sanctions for noncompliance

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				The Commissioner shall collect and review the actual costs for the institutions as
				reported in accordance with the Financial Elements and Reporting rules (N.J.A.C.
				8:31B-4 ). Costs so reported shall be subject to revision due to subsequent audits
				in accordance with
				8:31B-3.17. Hospitals shall submit
				information on these forms electronically in a format compatible with Department
				specifications.
(b) In addition to (a)
				above, hospitals shall submit, on a quarterly basis, unaudited financial and
				utilization data to the Department. The data shall be submitted within 60 days from
				the end of each calendar quarter. Data required to be submitted shall be specified
				by the Department but shall not exceed the data included in the B-2, L-1, and L-3
				forms from the New Jersey Acute Care Hospital Cost Report. Hospitals shall submit
				information electronically in a format compatible with Department specifications.
				The information shall agree with the hospital's unaudited financial statements.
				Except as otherwise provided in these rules, the information shall be consistent
				with Generally Accepted Accounting Principles (GAAP). The quarterly data submission
				specification can be obtained from the Director, Office of Hospital Finance and
				Charity Care, NJ Department of Health, PO Box 360, Trenton, NJ 08625-0360.
(c) Late submission of current cost, financial,
				and utilization data, as described in (b) above and
8:31B-4.6(c)
,
				will result in a penalty for each calendar day past the applicable submission date.
1. The Department will assess a civil monetary
				penalty, not to exceed $ 1,000 for each calendar day in which a hospital is not in
				compliance, for late submission of acute care hospital cost reports.
2. The Department will assess a civil monetary
				penalty, not to exceed $ 50.00 for each calendar day in which a hospital is not in
				compliance, for late submission of quarterly financial and utilization data
				specified in (b) above.
3. All of the
				specified forms, containing the required information, are necessary for a submission
				to be considered complete.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.11 - Same-day surgery

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Same-day surgery is considered an alternative
				mode of health care delivery that the Department considers to be efficient and
				worthy of encouragement. Same-day surgery is intended to lower the cost of health
				care and provide the appropriate level of care to patients who are otherwise
				classified as inpatients. The patient, by definition:
1. Is identified on the Uniform Bill-Patient
				Summary (UB-PS) as a 131 or 136 bill type in accordance with
				8:31B-2.1 and discharged before midnight
				of the day of admission, so admission date and discharge date are the
				same;
2. Had surgery performed in a
				fully equipped operating room, for example, one routinely equipped and capable of
				providing general anesthesia, and identified by an operating room charge on the
				UB-PS;
3. Had a normal discharge, for
				example, was not transferred, did not leave AMA, and was not discharged
				dead.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.16 - Aggregate Current Cost Data Base

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Once the Department
				has reviewed the hospital's submission in accordance with N.J.A.C. 8:31B-4 and
				determined it is suitable for entry into an aggregate current cost data base
				including data for all hospitals, the Department shall issue a notice of its intent
				to close the aggregate current cost data base. The notice to each hospital shall
				include a list of the completeness and/or mathematical adjustments the Department
				has made.
(b) A hospital which disagrees
				with the Department's completeness and/or mathematical adjustments shall submit, in
				writing, a complete list of its exceptions to the adjustments made by the
				Department. This list of exceptions shall be received by the Department within 30
				calendar days of the issuance of the notice of intent to close the aggregate current
				cost data base. If, upon review, the Commissioner determines that there were errors
				in the completeness and/or mathematical adjustments, a final list of adjustments
				will be provided to the hospital before the data is entered into the aggregate
				current cost data base.
(c) A hospital's
				current cost base submission cannot be substituted or rearranged after the aggregate
				current cost data base has been closed. Requests to rearrange or substitute current
				cost base data must be received in writing within 30 calendar days of the issuance
				of the notice of intent to close the aggregate current cost data base. If, upon
				review, the Department determines that the revised submission is acceptable, the
				data entered into the aggregate current cost data base will be based on the revised
				submission. The Department will advise the hospital of its final list of
				adjustments.
1. In the event that a hospital which
				fails to submit the most recent Acute Care Hospital Cost report due on June 30 of
				each year has not submitted that report prior to August 31 of the same year, the
				Department shall, in addition to assessing the civil monetary penalties provided for
				in 8:31B-3.3(c), enter
				zero dollars as the hospital's total gross revenue in the Aggregate Current Cost
				Data Base for the purpose of calculating the subsidies provided for in
				P.L.
				2004, c. 113.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.17 - Financial elements reporting; audit adjustments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The audited
				aggregate current cost data base is developed from financial elements reported to
				the Department and includes:
1. Costs related to
				patient care (as defined in
				8:31B-4.32 );
2. Less net income from specified sources (as
				defined in 8:31B-3.25 ); and
3. Capital facilities costs: capital cash
				requirements (as defined in N. J.A.C. 8:31B-4.21).
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.25 - Net income from other sources

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The net gain (loss)
				from other operating and non-operating revenues (as defined in
				N.J.A.C.
				8:31B-4.61 through 4.67), and expenses of the
				reporting period are items considered as recoveries of, or increases to, costs
				related to patient care (see
				N.J.A.C.
				8:31B-4.61 through 4.67) as reported to the
				Department.
(b) Such revenue shall
				include all other operating and non-operating revenues and expenses reported per NJ
				Acute Care Hospital Cost Report cost center costs and "expense recoveries" as Case B
				(see N.J.A.C.
				8:31B-4.61 through 4.67), and all other items
				reported per the Uniform Cost Reporting Regulation as to their Case specified in
				N.J.A.C.
				8:31B-4.61 through 4.67.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.43 - Adjustment of charges

Current through Register Vol. 56, No. 14, July 15, 2024
A hospital shall submit to the Commissioner upon request a copy
				  of its charges in use during the current year for review and monitoring
				  purposes.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.66 - Adjusted admission assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				The Department annually shall assess each general and specialty heart hospital
				a charge of $ 10.00 per adjusted admission in the most recent complete calendar
				year on a calendar-year basis.
1. Effective
				July 1, 2018, the Department annually shall assess each rehabilitation and
				long-term acute care hospital a charge of $ 10.00 per adjusted admission in the
				most recent complete calendar year on a calendar-year
				basis.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 3 - FINANCIAL MONITORING AND REPORTING › Section 8:31B-3.67 - 0.53 percent assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each general
				hospital and each specialty heart hospital shall be assessed annually on a State
				fiscal year basis 0.53 percent of its total operating revenue as reported in its
				most recent NJ Acute Care Hospital Cost Report. The amount assessed for each
				hospital annually shall be prorated by the Department so that the total assessed for
				all hospitals annually does not exceed $ 40,000,000. Hospitals shall pay the
				prorated assessed amount to the Department in 12 equal monthly installments.
1. The hospital's total operating revenue shall
				include revenue from any ambulatory care facility licensed to the hospital as a
				hospital-based off-site ambulatory care services facility.
2. In the event that a hospital, which fails to
				submit the most recent Acute Care Hospital Cost Report due on June 30 of each year,
				has not submitted that report prior to the Department's calculation of the
				assessment for the following year, the Department shall use the hospital's most
				recent assessment, increased by 15 percent, for the calculation of the following
				year's assessment.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Section 8:31B-4.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this
				subchapter is to provide the basis for a standardized system of reporting the
				financial elements to be used in conjunction with the Hospital Reporting of Uniform
				Bill-Patient Summaries regulation (N.J.A.C. 8:31B-2 ) and the Financial Reporting
				and Monitoring regulation (N.J.A.C. 8:31B-3 ) for implementing the Health Care
				Facilities Planning Act, P.L. 1971, c. 136 as amended by P.L. 1978, c. 83; P.L.
				1991, c. 187; P.L. 1992, c. 160,
				P.L.
				1998, c. 43,
				P.L.
				2004, c. 54, and
				P.L.
				2004, c. 113.
(b) The Commissioner shall require each hospital
				to report cost, revenue and statistical information in accordance with the uniform
				system described in this subchapter. Separately licensed hospitals that are part of
				a hospital system shall submit separate Acute Care Hospital Cost Reports as defined
				in 8:31B-4.131. This information is
				critical and is required to support the Department's public health activities, which
				include planning, licensing, allocating charity care subsidies, providing
				information to consumers and other interested parties, and monitoring hospital costs
				and revenues.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.2 - Functional versus responsibility reporting

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A prerequisite for
				  the informed review of hospital data is good communication, i.e., a common
				  understanding and use of terminology among all parties. Imperfect communication
				  results when terms such as "hours", "dietary", "purchased services", etc. mean
				  different things to different people. The objective in the design of this manual is
				  to achieve uniform reporting of financial elements consistent with uniform
				  definitions of functional cost and revenue centers, statistical data, patient data
				  and the natural classifications of expenses, i.e., salaries, supplies.
(b) Expenses, revenues and other data reported in
				  a manner consistent with the definitions included herein will provide a sound basis
				  for the establishment of a uniform system of reporting. This manual, however, is not
				  requiring that institutions adopt this functional reporting system for their
				  internal management reports, so long as institutions maintain the ability to report
				  data with reasonable accuracy in accordance with the functional definitions and
				  expense and revenue classifications defined herein.
(c) A hospital should structure its accounts for
				  the purpose of managing a sound cost-effective and financially viable organization.
				  In many instances, principally due to various budgetary control objectives, this
				  goal may be better achieved through recording of expenses and revenues on a
				  responsibility basis. However, it is highly unlikely that expenses and revenues
				  recorded on a responsibility basis can be reported "as is" on the prescribed
				  uniformed functional basis. This will necessitate the recast of expenses, revenue
				  and statistics per N.J.A.C. 8:31B-4. Various reporting schedules provide the
				  hospital with the opportunity to insure that the financial data used to develop the
				  financial elements of the current Cost Base, despite the recasts and allocations
				  involved, are equivalent to the hospital's own audited financial statements. A
				  working knowledge of the principles, concepts and definitions included herein,
				  especially with regard to the inclusion of specific functions within reporting
				  centers and of the natural classifications of expense, is necessary for a hospital's
				  accurate compliance with these reporting requirements.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.3 - Prescribed reporting principles

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The reporting
				  principles and concepts described in this chapter have been drawn from existing
				  systems wherever possible.
(b) Any
				  reporting principles and concepts not specifically discussed in this manual should
				  be reported according to Generally Accepted Accounting Principles as interpreted in
				  the opinions of the American Institute of Certified Public Accountants (AICPA) and
				  in the statements by the Financial Accounting Standards Board (FASB).
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.4 - Accounting entity

Current through Register Vol. 56, No. 14, July 15, 2024
A fundamental reporting concept is that of the accounting
					 entity or unit. For reporting purposes, the hospital is an entity capable of buying,
					 selling and taking other economic action, which are to be accounted for separately
					 from the personal affairs of those responsible for the hospital's administration.
					 The hospital itself is the primary unit for which the accounting records are
					 maintained. Many departments of the hospital assume sufficient importance to require
					 separate treatment as subordinate entities or units of accountability for planning
					 and control purposes.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.5 - Continuity of activity

Current through Register Vol. 56, No. 14, July 15, 2024
Another basic reporting concept is that of continuity of
					 activity, or the going concern. The assumption is that the hospital will continue to
					 function indefinitely. It then becomes necessary to divide the life of the hospital
					 into reporting periods, to determine revenues earned and expenses incurred during
					 each period and to measure the amounts of assets and obligations at the end of each
					 period.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.6 - Reporting period

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The basic reporting period is 12 consecutive
				  calendar months, which may be either on a calendar or fiscal year basis at the
				  hospital's option. Hospitals shall provide the Department six months notice of an
				  intent to change the reporting period before implementing any revised reporting
				  period or the Department will use the hospital's most recent, previously closed cost
				  report for the purposes listed in
				  8:31B-4.1(b)  adjusting
				  the data as provided for in
				  8:31B-3.16, 3.66, and 3.67, as
				  applicable.
(b) New hospitals beginning
				  operations on any day other than January 1 must select an initial reporting period
				  beginning on the first day of operation, through the last month preceding the end of
				  the hospital's fiscal year. For example, a hospital using a calendar year reporting
				  period and beginning operations August 15, 2001 would have an initial reporting
				  period running from August 15, 2001 through December 31, 2001. Its next reporting
				  period would then be January 1 to December 31.
(c) Each hospital's Acute Care Hospital Cost
				  Report submission for the most recent reporting period is due on June 30 of the
				  following calendar year. Failure to submit by this date will result in civil
				  monetary penalties as stated in
8:31B-3.3
.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.7 - Objective evidence

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Information produced
				  by the accounting process should be based, to the extent possible, upon objectively
				  determined facts. Transactions should be supported by properly executed documents
				  such as charge slips, purchase orders, suppliers' invoices, cancelled checks, etc.
				  Such documents serve as objective evidence of transactions and should be retained as
				  a source of verification of the data in the accounting records.
(b) Certain determinations that enter into
				  accounting records are based on estimates. Such estimates should be based on past
				  experience modified by expected future considerations. Examples would include
				  recognition of estimated provisions for bad debts and self-insurance funding and the
				  reporting of other operating expenses separately from Costs Related to Patient Care.
				  Items of Other Operating Expenses, if not directly classified by the hospital, if
				  large in amount, must be identified through a cost study, and if small in amount,
				  costs may be deemed equal to revenue and such costs apportioned among the
				  appropriate natural classifications of expense based on the hospital's estimate or
				  the classifications of the center where originating. Worksheets are provided along
				  with Reporting Schedules to aid the hospital in making all appropriate
				  reclassifications. All such reclassifications should be consistent with the concept
				  of materiality, defined in
				  8:31B-4.11.
(c) Books, papers, records, or other data relevant
				  to matters of hospital ownership, organization, and operation must be maintained.
				  The data must be maintained in an ongoing recordkeeping system which allows the data
				  to be readily verified by qualified auditors.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.8 - Conservatism

Current through Register Vol. 56, No. 14, July 15, 2024
Conservatism is a quality of judgement to be exercised in
					 evaluating the uncertainties and risks present in the hospital entity to assure that
					 reasonable provisions are made for potential losses in the realization of recorded
					 assets and in the settlement of actual and contingent liabilities. However,
					 conservatism is not justification for excessively high or low estimates.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.9 - Consistency

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Consistency refers to continued uniformity
				  during a period and from one period to another in methods of accounting, mainly in
				  valuation bases and methods of accrual, as reflected in the financial statements of
				  an accounting entity. Consistency is very important to the development and analysis
				  of trends on a year-to-year basis and as a means of forecasting. However,
				  consistency does not require continued adherence to a suboptimal method or
				  procedure. Any change of accounting procedure, consistent with the materiality
				  principal, must be brought to the attention of the Department by way of a cover
				  letter, which will accompany the hospital's Financial Elements Report to include
				  both a description and analysis of reporting impact of such accounting procedure
				  changes.
(b) As an example, the
				  accounting principal of accrual reporting (see
				  8:31B-4.13 ) may cause some hospitals
				  who currently account for vacation on a cash basis to incur a one time reporting of
				  expenses related to vacation time earned by employees but not yet taken. Such one
				  time costs must be included in a cover letter and the Financial Elements Report
				  shall identify only those vacations costs accrued in the current reporting
				  period.
(c) Any accounting and reporting
				  changes due to subsequent revisions of this manual or the documents referred to
				  herein will be reported in accordance with the instructions which accompany those
				  revisions.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.10 - Full disclosure

Current through Register Vol. 56, No. 14, July 15, 2024
The concept of full disclosure requires that all significant
					 data be clearly and completely reflected in accounting reports. If, for example, a
					 hospital were to change its method of accounting for certain transactions, within
					 the limitations of this manual, and if the change had a material effect on the
					 reported financial position, or operating results, the nature of the change in
					 method and its effect must be disclosed when reporting costs. No fact that would
					 influence the decisions of management, the governing board, or other users of
					 financial statements should be omitted from or concealed in accounting reports.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.11 - Materiality

Current through Register Vol. 56, No. 14, July 15, 2024
Materiality is an elusive concept with the dividing line
					 between material and immaterial amounts subject to interpretation. It is clear,
					 however, that an amount is material if its exclusion from the financial statements
					 would cause misleading or incorrect conclusions to be drawn by users of the
					 statements.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.12 - Basis of valuation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Historical cost is
				  the basis used in accounting for the valuation of all assets and in recording all
				  expenses (except fair market value in the case of donated non-cash goods and
				  services). Historical cost, simply defined, is the amount of cash or cash
				  equivalents given in exchange for properties or services at the time of acquisition.
				  It is the basis for the valuation of assets and for the recording of most expenses.
				  Cost ordinarily has been the basis of accounting for assets and expenses because it
				  is a permanent and objective measurement that reflects the accountability of
				  management for the utilization of hospital funds.
(b) Long term investments are to be reported at
				  current market value as noted in
				  8:31B-4.17, with corresponding income or
				  loss reported as realized or unrealized.
(c) Hospitals frequently acquire property,
				  equipment, services and supplies by donation. The property, equipment, service
				  and/or supply is considered donated when acquired without the hospital's making any
				  payment for it in the form of cash, property or service. The property, equipment,
				  service or supply should be valued at acquisition at the fair market value which is
				  the price that the asset would cost by bona fide bargaining between well-informed
				  buyers and sellers at the date of donation (regardless of date of receipt). The fair
				  market value of donated services must be recorded when there is the equivalent of an
				  employer-employee relationship and an objective basis for valuing such services. The
				  value of services donated by organizations may be evidenced by a contractual
				  relationship which may provide the basis for valuation. The amounts recorded are not
				  to exceed those paid others for similar work.
(d) The value of donated goods or services of a
				  type not consistent with the definition given are not included as operating expenses
				  (e.g., donated services of individuals such as volunteers, students and
				  trustees).
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.13 - Accrual accounting

Current through Register Vol. 56, No. 14, July 15, 2024
In order to provide the necessary completeness, accuracy and
					 meaningfulness in reporting data, the accrual basis of accounting is required.
					 Accrual accounting is the recognizing and recording of the effects of transactions
					 and other events on the assets and liabilities of the hospital entity in the time
					 periods in which they apply rather than when cash is received or paid.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.16 - Fund accounting

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Many hospitals receive income, gifts, bequests
				  and grants from donors, governmental or other sources external to the hospital that
				  are restricted as to their use. When funds with externally imposed restrictions are
				  received, they must be recorded in a separate fund. This would not preclude the
				  pooling of assets by the hospital among its funds for investment purposes.
(b) Funds transferred to the operating fund from
				  the restricted fund for board-restricted activities must be recorded in the
				  unrestricted fund as nonoperating revenue and as an operating expense when expended.
				  For reporting purposes, the recording of transactions among and within the
				  unrestricted and restricted funds are to be in accordance with the AICPA Hospital
				  Audit Guide.
(c) Funds fall into four
				  categories: "unrestricted" funds, "donor-restricted plant and equipment" funds,
				  "specific-purpose" funds, and "endowment" funds. The accounts within each fund are
				  to be self-balancing, and each fund constitutes a separate subordinate accounting
				  entity. This subsection outlines the conditions and events which require separate
				  accountability within the established funds.
1.
				  Unrestricted funds are used to account for all monies that are not restricted by
				  donors or grantors in accordance with the rules set forth in this section. Two funds
				  are to be established for unrestricted funds:
i.
				  Operating fund is used to account for funds derived from ongoing patient care and
				  related day-to-day activities of the hospital, except for the portions of such funds
				  otherwise classified here.
ii.
				  Board-designated funds are unrestricted funds that have been designated for specific
				  purposes by the hospital's governing board. The board retains the right to
				  undesignate such funds. The amount of such board-designated funds for capital
				  replacement and renovation, as well as the sources and applications of all
				  board-designated funds shall be reported annually to the Department per
				  N.J.A.C.
				  8:31B-4.13.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.17 - Long-Term Security Investments

Current through Register Vol. 56, No. 14, July 15, 2024
Long-Term Security Investments are to be valued at current
					 market value. If acquired by donation, they are to be valued initially at the fair
					 market value at the date of the gift. Changes in the market value of investments,
					 both realized and unrealized, during a reporting period are to be reported as income
					 or losses for that reporting period.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.18 - Pooled investments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Investments of
				  various funds may be pooled by the hospital unless prohibited by law or the terms of
				  a donation or grant. Gains/losses and investment income on pooled investments must
				  be distributed to participating funds on a basis utilizing market value at the time
				  of pooling.
(b) Each time an addition is
				  made to the investment pool, a new distribution basis must be calculated. This is
				  also true for any reductions to the pool. All capital gains and losses and
				  investment income from the beginning of the accounting period up to the date of the
				  addition or reduction must be determined and distributed on the basis of account
				  balances prior to the addition. Any capital gains and losses and investment income
				  subsequent to an addition or reduction must be distributed on the new basis until
				  another addition or reduction is made.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.19 - Inventories

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Inventories reflect
				  the cost of unused hospital supplies. Any generally accepted cost method (e.g.,
				  FIFO, LIFO, Average, etc.) may be used as long as it is consistent with that of the
				  preceding accounting period. Cost of inventories based on the last invoice price is
				  not an acceptable method for determining such costs.
(b) Inventory accounting record systems are
				  required, consistent with the method of the inventory valuation employed. Physical
				  valuations must be made at least once a year and the accounting records adjusted to
				  such valuation when appropriate.
(c)
				  Inventory activity records must be maintained for all inventories that are
				  distributed and used by more than one cost center in the hospital. It is recommended
				  that a formal requisition system be used for this purpose. In all cases, the cost of
				  non-billable supplies used during the period must be distributed to the user cost
				  center, preferably on a monthly basis.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.20 - Accounting for minor moveable equipment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Minor moveable
				  equipment includes such items as waste baskets, bed pans, silverware, mops, buckets,
				  etc. The general characteristics of this equipment are:
1. In general, no fixed location and subject to
				  use by various departments within a hospital;
2. Comparatively small in size and unit
				  cost;
3. Generally, a useful life of
				  less than three years.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.21 - Accounting for capital facilities cost

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Capital Facilities
				  include owned or leased land, land improvements, buildings, fixed equipment,
				  leasehold improvements, major moveable equipment and related debt service
				  requirements.
(b) Land improvements
				  include paving, tunnels, underpasses, on-site sewer and water lines, parking lots,
				  shrubbery, fences, walls, etc. (if replacement is the responsibility of the
				  hospital).
(c) Buildings include the
				  basic walled structure or shell of a hospital and additions thereto.
(d) Fixed Equipment and Building Components
				  include roofs and attachments to buildings such as wiring, electrical fixtures,
				  plumbing, elevators, heating systems, air conditioning systems, etc. The general
				  characteristics of this equipment are:
1. Affixed
				  to building and not subject to transfer of movement;
2. Used for general purpose rather than for
				  specific department functions.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.22 - Timing difference

Current through Register Vol. 56, No. 14, July 15, 2024
Timing differences result when accounting policies and
					 practices used in an organization's accounting differ from those used for reporting
					 operations to governmental units collecting taxes or to outside agencies
					 establishing or making payments based upon the reported operations. These
					 differences are to be reported on the hospital's records when they arise in
					 accordance with relevant AICPA policies. For the reporting of deferred income tax
					 refer to--Income Tax Allocation--Accounting Principles Board Opinions Nos. 11, 23,
					 and 34.
New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part I - REPORTING PRINCIPLES AND CONCEPTS › Section 8:31B-4.23 - Reporting of pledges

Current through Register Vol. 56, No. 14, July 15, 2024
All pledges, less a provision for amounts estimated to be
					 uncollectable, are to be included in the hospital's financial reports. If
					 unrestricted they are to be reported as non-operating revenue in the Unrestricted
					 Fund in the period the pledge is made. If part of the pledge is to be applied during
					 some future period, that part is to be reported in the period the pledge is received
					 as deferred revenue. If restricted, they are to be reported as an addition to the
					 appropriate restricted fund balance. See AICPA, Hospital Audit Guide available at
www.AICPA.org
, American Institute of
					 Certified Public Accountants, 1211 Avenue of the Americas, New York, NY
					 10036.