Acceptance of Medicare Cost Report

10.3 – Acceptance of Medicare Cost Report (Rev. 107, Issued: 09-22-06; Effective: 10-01-06; Implementation: 10-02-06) The contractor is required to make a determination of acceptability within 30 days of receipt of the provider’s cost report. (See 42 CFR 413.24(f)(5)(iii)). The Uniform Desk Review (UDR) program (see §20.2.A of this chapter) contains Part I Acceptability Checklist that can be used to make that determination. Failure to supply all the following items (enumerated in PRM-II, Section 140) will cause the cost report to be rejected. For all providers filing electronic cost reports (ECRs): 1. A diskette (or other media as permitted in PRM-II, §130.2) of the ECR utilizing CMS- approved vendor with the current specification date submitted. (See PRM-II, §140 regarding bad or damaged cost report diskette.) 2. An ECR that passes all Level 1 edits. 3. A submitted print image file of the cost report except when using CMS free software. 4. The certification page (Worksheet S) of the ECR file with the original signature (not a facsimile or stamped copy of the signature) of an officer (administrator or chief financial officer). 5. An exact match of the encryption code, date and time for the ECR displayed on the certification page to that of the ECR file encryption code, date and time. 6. An exact match of the encryption code, date and time for the print image displayed on the certification page to that of the print image file encryption code, date and time except when using CMS free software. 7. For teaching hospitals, a complete Intern and Resident Information System (IRIS) diskette that will pass all IRIS system edits. 8. The settlement summary on the electronic certification page agrees with the settlement summary on the Medicare cost report produced from the electronic file. (Prior to rejection confirm that the settlement summary difference is not caused by the contractor-automated data reporting (ADR) vendor system.) 9. A completed Form CMS-339 with an original signature of an officer or administrator. For all other providers: 1. A completed and legible cost report on the proper forms that is mathematically correct. 2. A general information and certification page which includes the original signature of an officer (administrator or chief financial officer). 3. A completed Form CMS-339 with an original signature of an officer or administrator. In addition to the items enumerated above, providers are requested to submit other documentation that may be required to complete a desk review. However, failure to supply any or all of those items is not a basis for rejection of the cost report. Contractors previously verified the seven items listed below (also detailed in PRM-II, Section 140) were submitted by completing Part II of the Acceptability Checklist. Completion of Part II of the Acceptability Checklist is optional from the date of this change memorandum until October 2, 2006. Effective October 2, 2006, contractors shall no longer complete Part II of the Acceptability Checklist. 1. Correctly updated graduate medical education (GME) per resident amounts, where applicable. 2. All applicable documentation required in instructions to Form CMS-2552-96 (hospitals). 3. All documentation per Form CMS-339 required for the provider’s type. 4. Documentation supporting exceptions to level 2 ECR and healthcare cost report information system (HCRIS) edits. 5. A copy of the working trial balance for nonhospital providers (this is covered in Item 2 for hospitals). 6. A copy of the audited financial statements, where available. 7. Supporting documentation for reclassifications, adjustments, related organizations, and protested items for nonhospital providers (this documentation is covered in Item 2 for hospitals), where applicable. If you determine you need any of the above information, and it was not submitted with the cost report, you shall request the information from the provider allowing at least seven (7) work days to submit it.