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Why does your facility need to file a Medicare cost report? There are many reasons.
The Medicare cost report filing process provides actionable financial information to CMS on your dialysis center operations, serves as a CMS data source for future rate setting, allows for recovery of unpaid Medicare deductibles and co-pays and ensures compliance with CMS reporting requirements.
One of the outcomes of preparing a cost report is CMS gains a deeper understanding of the financial and managerial operations of your facility. Revenue per treatment and cost per treatment (including supply, drug and laboratory costs) are calculated, which are key indicators of centers profitability and operational success.
Annual Medicare bad debt recovery is calculated and reimbursed through cost report filing process. When Medicare deductibles and co-insurance go unpaid throughout the year, your centers cash flow is impaired. CMS Cost Report filing instructions allows for a mechanism for requesting Medicare bad debt reimbursement of these unpaid patient and non-paid insurance balances.
What happens if you don’t file a cost report? Not only are your bad debt funds not reimbursed to you, but your ongoing monthly Medicare payments will be suspended. And we all know your dialysis center is wholly reliant on these monthly Medicare payments to fund the operations of your company. So don’t miss out, get your cost report filed on time!