New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter V - Medical Facilities › Subchapter A - Medical Facilities-minimum Standards › Article 8 - New York State Annual Hospital Report › Part 444 - Description Of Accounts › Income Statements › Section 444.17 - Operating expenses-general

Current through Register Vol. 46, No. 28, July 10, 2024
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(a) Expenses are expired costs, that is,
						costs that have been used up in carrying on some activity during the accounting
						period and from which no future measurable benefit will be obtained. Hospital
						expenses consist primarily of employee compensation, but substantial amounts of
						expense are in the form of supplies used, utilities, repairs, insurance,
						depreciation and other items. The objective of expense accounting is to
						accumulate, on the accrual basis, complete and meaningful records of expenses.
						Within each cost center, the expenses are classified, according to natural
						classification by the use of the fifth and sixth digits in the numerical coding
						system.
(b) Hospitals are required
						to use in the required reports all revenue and expense accounts which have
						capitalized titles and which have numerical codes with a fourth digit of zero
						(except where noted) when such a function as defined in this manual exists,
						even though the activity is not separately organized within the hospital. The
						only circumstances under which the hospital need not report an existing zero
						level account are when the patient service provided in a Daily Hospital
						Services cost center is not provided in a discrete unit.
(c) PATIENT SERVICE EXPENSE. This group of
						accounts (6000 - 7999) is used to report the direct expenses incurred in
						providing nursing and other professional services (daily hospital services,
						ambulatory services and ancillary services) rendered to patients. For each
						nursing and other professional service revenue center account a corresponding
						cost center account is provided. The second, third and fourth digits of the
						account numbers of the related revenue and expense cost centers are the same.
						Comparisons of the revenue and direct expense of each nursing and other
						professional service center are thereby facilitated.
(d) OTHER OPERATING EXPENSE. This group of
						accounts (8000 - 8999) is used to report the direct expenses incurred by the
						research, education, general, fiscal and administrative cost centers, and
						various unassigned cost centers. When cost finding procedures are performed,
						the expenses charged to these centers are allocated to the various patient
						service expense cost centers to determine the full cost of providing each
						revenue producing service.
(e) The
						following pages contain detailed descriptions of the functions or types of
						activities to be included in each cost center, the name and definition of the
						applicable standard unit of measure and the data source of the standard unit of
						measure.
(f) STANDARD UNITS OF
						MEASURE. The Standard Unit of Measure is required to provide a uniform
						statistic for measuring costs. The Standard Unit of Measure for revenue
						producing cost centers (Daily Hospital, Ambulatory, and Ancillary Services)
						attempts to measure the volume of services rendered to patients (productive
						output). For non-revenue producing cost centers, the Standard Unit of Measure
						attempts to measure the volume of support services rendered. The Standard Unit
						of Measure provides a method of determining unit cost and revenue to facilitate
						cost and revenue comparisons among peer group health facilities. Standard Units
						of Measure should not be confused with allocation statistics used to allocate
						cost of non-revenue producing cost centers to each other and to the revenue
						producing centers.