New Jersey Administrative Code › Title 8 - HEALTH › Chapter 31B - HOSPITAL FINANCIAL REPORTING › Subchapter 4 - FINANCIAL ELEMENTS AND REPORTING › Part II - GENERAL GUIDANCE › Section 8:31B-4.64 - Sales and services not related to patient care

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Provision of General
				  Services to an External Organization: The provision of data processing, laundry,
				  housekeeping, managerial or other general services by a hospital to an organization
				  other than another health care facility are excluded and treated as Case A. Costs of
				  such arrangements should include associated overhead and be reported in accordance
				  with the reporting of related organizations (see
				  8:31B-4.25 ).
(b) Sale of Medical Supplies (other than for an
				  episode of hospital care) to patients such as take-home drugs, excluding those items
				  where it would be medically unreasonable to limit the patient's use to the episode
				  of hospital care, and others are excluded. Take-home supplies for renal dialysis and
				  home health care are included where included in the provisions of Medicare Provider
				  Reimbursement Manual, Publication 15, Part II, Chapter 36, Hospital and Hospital
				  Health Care Complex Cost Report, incorporated herein by reference and available at
www.CMS.hhs.gov/manuals/cmsindex.asp
.
(c) Sale of Scrap revenue is excluded from the
				  revenue center and treated as Case B.
(d) Medical Records Transcription for patients,
				  their legal advocates, or other non-hospital personnel are excluded. Costs (to be
				  reported to the revenue received unless direct costing is available) and revenue are
				  treated as Case A.
(e) Cafeteria
				  operations, including vending machines, are treated as Case C, except for the
				  subsidization of employee meals and meals for students in approved programs.
				  Cafeteria operating losses are to be apportioned among employees, students and
				  others per 8:31B-4.131. Subsidization of employee
				  (including resident) means is included as an employee fringe benefit. Subsidization
				  of student meals is included as other direct expenses in either EDU or GME cost
				  centers (see N.J.A.C. 8:31B-4, Part V).
(f) Gift and Coffee Shops revenue and expense
				  (including sales tax expense) as well as other activities which may be supported by
				  volunteers are excluded from Services Related to Patient Care (Case C).
(g) Services Rendered to Staff Physicians by a
				  hospital which normally would be incurred in a physician's private practice, such as
				  the provision of medical secretarial services, are excluded and treated as Case C so
				  long as the physician's compensation is not provided through agreement with a
				  hospital.
(h) Parking lot or parking
				  garage expenses and revenues at the site of the hospital are to be netted and the
				  remainder apportioned between employees and others per
				  8:31B-4.131. The provision of parking
				  facilities to:
1. Employees are included-Losses
				  incurred from the operation of an employee parking lot are included as an employee
				  fringe;
2. Staff physicians parking is
				  included and treated as Case B.
3.
				  Others are included (Case B) if the hospital's charge for parking is not
				  substantially inconsistent with other parking facilities in the community where the
				  hospital is located.