Medicare Compliance & Reimbursement

Free software in the works for cash-strapped organizations.

More types of health care providers than ever will soon be obliged to file their cost reports electronically. In a final rule published in the Aug. 22 Federal Register, the Centers for Medicare & Medicaid Services expands its electronic cost reporting requirements - which currently apply to hospitals, skilled nursing facilities and home health agencies - to a host of new organizations. Provider types covered by the rule are: hospices, organ procurement organizations, rural health centers, federally qualified health centers, community mental health centers and end-stage renal disease facilities. The rule takes effect with cost reporting periods ending Dec. 31, 2004, which means the first electronic cost reports will be due May 31, 2005. CMS has established a 2-year phase-in during which providers will submit both paper and electronic reports. Cost-Saving Tip: CMS promises to produce free software to aid the preparation of electronic cost reports (it should hit the streets by October 2004). To get a copy, a provider should request it from its fiscal intermediary and provide an explanation as to why it would be a burden to purchase the software on its own. To see the rule, go to http://www.access.gpo.gov/su_docs/fedreg/a030822c.html. Lesson Learned: Hospices, OPOs, RHCs and other providers covered by the rule should start planning now to be ready to submit their cost reports electronically.