CMS has instructed Medicare Administrative Contractors (MACs) to audit cost report data included on Worksheet S-10 for cost reporting periods beginning October 1, 2017, through September 30, 2018. The focus of the audits is on charity and bad debt adjustments that are now being utilized to distribute Medicare Uncompensated Care payments. The MACs are reviewing policies that govern which patient accounts receive these adjustments and reconciling amounts back to supporting documentation.

The following are items CMS is requesting:

  • Copy of charity and financial assistance policies
  • Copy of audited financial statements and/or working trial balance
  • Logic used in pulling adjustment amounts that were previously reported
  • Detail patient listings of adjustments that include the original charges at a revenue code level
  • Listing of transaction codes with descriptions
  • Reconciliation of reported amounts to the provider’s financial records

Palmetto GBA requires the files be uploaded to their portal no later than April 3, 2020.

WPS requires the data be submitted on an encrypted CD or flash drive no later than March 31, 2020.

If you have any questions or need assistance with these audits, please contact our Albany office at (229) 883-7878 or our Atlanta office at (404) 220-8494 as soon as possible.

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