Worksheet S-10 Soon to be Used to Distribute Uncompensated Care Pool

InsightsClient Alert

Earlier this year, the Medicare Payment Advisory Commission (MedPAC) recommended the Centers for Medicare and Medicaid Services (CMS) begin distributing uncompensated care payments based on data from Worksheet S-10 of the Medicare cost report. CMS indicated last year it would discuss a possible timeline for using S-10 data in the FY 2017 inpatient prospective payment system proposed rule.

CMS has been hesitant to use S-10 data due to concerns over accuracy and variations in the data reported. MedPAC asserts S-10 data is a closer match to audited uncompensated care data than the current distribution method. MedPAC suggests a three-year phase in to provide an incentive for improved reporting and auditing of S-10 data. MedPAC advised CMS to audit aberrant data and the hospitals reporting the largest amounts of uncompensated care.

Due to the imminent use of S-10 data and its scrutiny, hospitals should carefully review their data to ensure it is complete and accurate. Detailed patient lists and other supporting documentation must be available in the event of an audit.

We are available to provide on-site, hospital-specific guidance to position your hospital to receive as much of the uncompensated care pool allocation as possible while ensuring compliance with reporting requirements. Only prospective payment system hospitals qualifying for disproportionate share hospital payments receive uncompensated care payments, but critical access hospitals are also required to complete Worksheet S-10.

Please contact Charles Horne, Jeff Askey, or Lisa Gilmore at (229) 883- 7878 to discuss a Worksheet S-10 specific project for your hospital.