Oregon Administrative Rules › Chapter 410 - OREGON HEALTH AUTHORITY, HEALTH SYSTEMS DIVISION: MEDICAL ASSISTANCE PROGRAMS › Division 50 - TAX RULES › Section 410-050-0750 - Reporting Total Net Revenue, Use of Estimated Revenue for Quarterly Reports

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A hospital
			 shall submit quarterly reports and quarterly payments for the calendar quarters
			 for which an assessment is due consistent with sections (2) and (5) of this
			 rule, and shall submit a fiscal year reconciliation report that includes a
			 reconciliation statement, audited financial statement, and any fiscal year
			 reconciliation assessment payment based on the hospital's declared fiscal year
			 end consistent with sections (3) and (5) of this rule.
(2) The quarterly reports and quarterly
			 assessment payments shall be based on estimated net revenue, which shall be
			 referred to as estimated assessment. Estimated assessment is the amount of
			 assessment the hospital expects to owe for the current calendar quarter. The
			 hospital shall calculate the estimated assessment based on net revenues using
			 the hospital's interim financial results for the quarter for which the
			 assessment is due. An estimated quarterly report is due for each calendar
			 quarter for which an assessment is due, based on the rate of assessment
			 applicable to that quarter. The quarterly payment is due and shall be paid at
			 the same time required for filing the quarterly report.
(3) The fiscal year reconciliation report and
			 fiscal year reconciliation assessment payment shall be based on the amount of
			 assessment the hospital actually owes based on annual net revenue for all
			 calendar quarters for which an estimated assessment payment is due during the
			 hospital's declared fiscal year. The hospital shall calculate the annual net
			 revenue for the hospital's declared fiscal year. The fiscal year reconciliation
			 assessment payment due shall be the calculated assessment (using the assessment
			 rate applicable to the appropriate quarter, described in subsection (c) below
			 for fiscal year reconciliation assessment calculation purposes) on the annual
			 net revenue reduced by the estimated assessment payments made for each
			 assessment quarter of the hospital's declared fiscal year. The hospital shall
			 provide all information required in the fiscal year reconciliation report when
			 due, even if no fiscal year reconciliation assessment payment is owed:
(a) When the fiscal year reconciliation
			 report is submitted, it shall be accompanied by the hospital's declared fiscal
			 year end audited financial statement for the declared fiscal year on which the
			 fiscal year reconciliation report and fiscal year reconciliation assessment
			 payments are based;
(b) The fiscal
			 year reconciliation report shall include a reconciliation statement describing
			 the relationship between the audited financial statement and annual net
			 revenues subject to the assessment. The reconciliation statement may be
			 descriptive in form and shall be consistent with the accounting principles used
			 in the audited financial statement;
(c) The rate applicable to the final
			 assessment shall be calculated as follows:
(A) If all assessment quarters were subject
			 to the same rate established in OAR 410-050-0160  and 410-050-0861, then the
			 rate applicable to the final reconciliation is the assessment rate applicable
			 to all such quarters. For example, if the hospital's declared fiscal year is
			 July 1, 2004 to June 30, 2005, then the assessment rate is .93 percent of
			 annual net revenue;
(B) If
			 different assessment rates apply to calendar quarters in the hospital's
			 declared fiscal year, the hospital shall apply a blended rate to the total
			 annual net revenue to determine the fiscal year reconciliation assessment due.
			 A blended rate is the average of the rates applicable to all assessment
			 quarters. The Authority shall notify the hospital of the amount of the
			 applicable blended rate. For example, if the hospital's declared fiscal year
			 overlaps two quarters assessed at a rate of .93 percent and two quarters
			 assessed at .50 percent, then the blended rate for purposes of the annual
			 reconciliation is .715 percent. For purposes of calculating the fiscal year
			 reconciliation assessment due, the hospital shall multiply the annual net
			 revenue by the blended rate.
(d) If the total estimated assessment
			 payments already paid by the hospital for the declared fiscal year exceed the
			 amount of the fiscal year reconciliation assessment actually due, the fiscal
			 year reconciliation report shall identify the difference and the hospital shall
			 adjust the fiscal year reconciliation assessment due amount in the fiscal year
			 reconciliation report for that assessment year;
(e) The fiscal year reconciliation report,
			 audited financial statement, and reconciliation statement shall be due and
			 submitted to the Authority no later than the final day of the sixth calendar
			 month after the hospital's declared fiscal year end. The fiscal year
			 reconciliation assessment payment (if owed) is due and shall be paid at the
			 same time required for filing the fiscal year reconciliation report. Failure to
			 file or pay when due shall be a delinquency;
(f) If the declared fiscal year end audited
			 financial statement for the hospital is not available within the time required
			 in subsection (e), a fiscal year reconciliation assessment payment (if owed)
			 and fiscal year reconciliation report must be submitted within the time period
			 specified under subsection (e). The hospital may use interim financial
			 statements to determine the amount of the fiscal year reconciliation assessment
			 due and may submit a justification statement with the fiscal year
			 reconciliation report due no later than the date specified in subsection (e)
			 signed by the hospital's chief financial officer informing the Authority when
			 the audited financial statement is due and certifying that an amended fiscal
			 year reconciliation report, including the reconciliation statement, shall be
			 provided to the Authority within 30 days of the hospital's receipt of the
			 audited financial statement. Reports and payments made after the time period
			 required in subsection (e) shall be submitted in compliance with OAR
			 401-050-0760;
(g) If the hospital
			 does not receive audited financial statements, then internal financial
			 statements signed by the hospital's chief financial officer shall be submitted
			 where these rules otherwise require audited financial statements;
(h) If the effective date of the assessment
			 is not at the start of the hospital's declared fiscal year, then the annual net
			 revenue for the first fiscal year reconciliation report shall be calculated
			 based on the number of quarters subject to the assessment versus the total
			 number of quarters in the hospital's declared fiscal year. For example, if the
			 assessment is effective on July 1, 2004 for a hospital with a declared fiscal
			 year ending December 31, 2004, the annual net revenues shall be calculated as
			 follows: total net revenues for the declared fiscal year divided by two (two of
			 four quarters subject to the assessment).