Cost Reports and Auditing of Multiple Provider Institution

40.1 – Cost Reports and Auditing of Multiple Provider Institution (Rev. 27, 12-19-03) Where an institution certified as a certain type (e.g., hospital, SNF, HHA) has a distinct unit certified as another provider type (e.g., a hospital has a SNF, HHA, or a unit excluded from inpatient prospective payment system), each such distinct unit (a.k.a. subprovider) is, in effect, another department of the provider. Cost finding in such an institution involves allocation of the institution's costs between the main provider and subproviders (e.g., between the hospital and the SNF, HHA, or excluded unit). Thus, provider complexes with subproviders must file one cost report on the CMS cost reporting forms designated for the main provider (e.g., Form CMS-2552 for hospitals). Separate cost reports may not be filed for the provider-based components (subproviders). Therefore, in your audit plan, consider the audit of a multiple provider institution as one workload unit but, as appropriate, include audit procedures to review the provider-based component(s).