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 446 - Reporting Requirements › Section 446.1 - Introduction

Current through Register Vol. 46, No. 28, July 10, 2024
(a)Public Law
					 95-142, section 19, requires that for the purposes of reporting the cost of
					 services provided by, of planning and of measuring and comparing the efficiency
					 of and effective use of services in, hospitals, the Secretary of Health and
					 Human Services shall establish by regulation a uniform system for reporting
					 certain types of information. It further states that in reporting under such a
					 system, hospitals shall employ such chart of accounts, definitions, principles
					 and statistics as the Secretary of Health and Human Services may prescribe in
					 order to reach a uniform reconciliation of financial and statistical data for
					 specified uniform reports to the Secretary of Health and Human
					 Services.
(b) First, hospitals must
					 follow a set of uniform reporting policies and practices as specified in Part
					 442 of this Article. Items such as methods of capitalization and depreciation
					 of assets and direct charging of medical supplies and payroll-related employee
					 benefits to using centers are examples of important policies which must be
					 followed for reporting purposes. When these policies differ from those of the
					 hospital, reconciliations must be made to reflect the required policies in
					 completing the uniform financial report.
(c) Secondly, the principles and concepts
					 utilized in the preparation of the uniform financial report will be based upon
					 a portrayal of the hospital's activities on a functional basis regardless of
					 third-party reimbursement policies. The uniform financial report described in
					 this Manual has been designed to flow directly into the Federal cost reports
					 required for Titles 18 and 19 where the functional trial balance of expenses is
					 subject to grouping, reclassification and adjustment as the data moves to the
					 reimbursement worksheets.
(d) The
					 third key principle affecting the preparation of the uniform financial report
					 is the requirement that costs will be measured at a level where uniformity can
					 be obtained and a standard output measurement applied. For purposes of
					 reporting, it was determined that standard units of measure would be applied to
					 cost centers. Therefore, for uniform functional reporting of revenue and
					 expense there may be a need for reclassification to convert revenue or costs
					 from the responsibility reporting format to a functional reporting
					 format.
(e) Responsibility
					 reporting is defined as the reporting of costs according to organizational
					 units such as departments.
(f)
					 Functional reporting is defined as the reporting of costs according to type of
					 activity.
(g) Total costs are the
					 same with either functional or responsibility reporting. However, because
					 organization structures vary among hospitals, responsibility reporting does not
					 allow the comparability necessary for reasonable evaluation. Therefore, the
					 reporting system for hospitals was developed to allow comparable reporting of
					 hospital costs while hospitals maintain responsibility accounting systems if
					 they so desire.
(h) Hospitals are
					 required to report:
(1) hospital profile
					 data--data identifying the control, type, services offered, certification(s),
					 programs, coverage, etc. of the facility;
(2) assets, liabilities and equity--all
					 balance sheet accounts whose titles are capitalized in the listing of accounts
					 and whose numerical code ends in "0" when such assets, liabilities and equity
					 exist (and certain subaccounts as noted in section
					 446.8 of this Part);
(3) daily hospital services--all revenue and
					 expense centers whose titles are capitalized in the listing of accounts and
					 whose numerical code ends in "0" when such revenue centers and cost centers
					 exist and are located in a discrete unit of the facility (and certain
					 subaccounts as noted in section
					 446.9 of this Part). A discrete
					 unit is a separately organized, staffed and equipped unit of the
					 facility;
(4) where two or more
					 daily hospital services, as defined in Part 444 of this Article, are provided
					 in the same unit, the revenue and expense applicable to that unit must be
					 reported in the functional revenue and cost centers which best describe the
					 principal patient service provided in the combined unit. For example, assume
					 that a hospital maintains a combined acute care unit which provides
					 medical/surgical, pediatric and obstetrics acute care. Also assume that
					 principal patient care service provided in this unit is medical/surgical acute
					 care. The hospital in this situation will report the revenue and expense
					 applicable to this unit as being medical/surgical acute care. Furthermore, the
					 hospital, when completing the Services Inventory Worksheet, will indicate that
					 Pediatric Acute Care and Obstetrics Acute Care are being reported as
					 medical/surgical acute care in the reporting forms by entering the
					 Medical/Surgical Acute account number;
(5) all other revenue centers and cost
					 centers--all other revenue centers and cost centers whose titles are
					 capitalized in the listing of accounts and whose numerical code ends in "0"
					 when the services or function exists or is performed in the hospital,
					 irrespective of whether or not it is a discrete unit (and certain subaccounts
					 as noted in section
					 446.9 of this Part);
(6) units of measure--the required standard
					 unit of measure must be accumulated and reported for all expense centers
					 indicated in Part 444 of this Article;
(7) natural classification of expense--all
					 natural classifications of expense, except salaries and wages, whose numerical
					 code ends in "0". All of the salaries and wages sub-natural classifications
					 e.g.,.01 Management and Supervision, 02 Technician and Specialist, .03
					 Registered Nurse, etc.) must be reported for each functional cost center, as
					 appropriate;
(8) other supplemental
					 reimbursement reporting--for other third-party reimbursement as described in
					 sections 446.7 through
					 446.44 of this Part.