< Back to Thought Leadership

Uncompensated Care S-10 Audits are Coming

CMS continues to refine the uncompensated care calculation.  Three factors are utilized to calculate uncompensated care reimbursement for IPPS hospitals.  Factor 3 is developed by compiling the cost of uncompensated care that is reported on the Medicare cost report Worksheet S-10.  Effective with federal fiscal year 2020, worksheet S-10 will fully utilize uncompensated care data taken from the Medicare cost report.  It is now critical that hospitals report complete and accurate uncompensated care information.

For cost reporting periods beginning on or after October 1, 2018, Medicare disproportionate share eligible hospitals must submit a patient-level listing of charity care and/or uninsured discounts as part of their cost report supporting documentation. CMS has not yet provided comprehensive instructions on what data elements will be required as part of this detail listing.

At the direction of the CMS, the MACs have recently been sending out Additional Documentation Requests regarding the information claimed by hospitals on the FY 2015 Worksheet S-10.  The requests have been very extensive and detailed.  In addition, the time frame for responding to the requests has been short.

To prepare for these changes, hospitals should review financial assistance policies to ensure compliance. In addition, hospitals must determine that all applicable uncompensated care amounts are being captured and properly reported on Worksheet S-10.

If you require any assistance or have any questions, we are available to discuss these changes with you. Please see the appropriate state contacts listed below:

Indiana: Lisa Deaton | 317-713-7921 | ldeaton@blueandco.com

Kentucky: Nick Ficklin | 502-992-3490 | nficklin@blueandco.com

Ohio: Judith Maloney | 614-222-1377 | jmaloney@blueandco.com

not-for-profit cecl model

Decoding The New CECL Model for Not-For-Profits

By Priya Singleton, CPA, Director at Blue & Co. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of […]

Learn More

Final Hospital 340B Outpatient Prospective Payment System (“OPPS”) Remedy

On November 2, 2023, the Centers for Medicare & Medicaid Services (CMS) released a final rule outlining a plan to correct and reverse the 340B payment cuts from calendar years […]

Learn More
restricted fund tracking

Restricted Fund Tracking and Cash Management

By Andrew Brock, CPA, Senior Manager at Blue & Co. Earlier in June 2023, an article was published by our not-for-profit services team titled “Unveiling the Dynamics of Donor-Restricted Contributions”. […]

Learn More