Certified Public Accountant Providing Accounting, Tax, Audit, Consulting and Bookkeeping Services

Medicare Cost Reports

Medicare Cost Reports

Home Health Agency Medicare Cost Reports (aka AHCA Cost Reports) are required for all Home Health Agencies (HHA), Hospice, Hospitals, and Renal Facilities to file an annual Medicare Home Health Agency Cost Reports.

 The AHCA Medicare Cost Reports takes annual financial information from your agency and reports expenses by discipline and by administrative expensive. The AHCA Medicare Cost Reports disallows certain expenses the report then allocates all administrative allowable expenses to the disciplines. This results in a total discipline cost that is allocated to the number of visits performed by discipline which determines a cost per visit by discipline.

This allows Medicare to determine by geographic area the Medicare expense for each diagnosis thus setting the HHRG amounts for payment of claims.

How is a Home Healthcare Agency Medicare Cost Reports Filed?

The first step to filing an accurate AHCA Medicare Cost Reports is to have accurate financial statements, which we prepare. The agency transactions for the year are summarized into financial statements, which include the income statement, balance sheet and statement of cash flows. Medicare regulations will disallow certain transaction expenses and related party transactions to reduce the amount of allowable expenses to be formally submitted to Medicare for cost of services provided

Home Health Agency Accountants

As Home Health Agency Accountants we prepare AHCA Medicare Cost Reports for Federal/State programs administered through the State of Florida Agency for Health Care Administration (AHCA). Each provider participating in the Medicaid or Medicare program shall submit a uniform Cost Reports and related documents required by the Florida Title XIX Long-Term Care Reimbursement Plan (Plan). For AHCA Cost Reports periods ending on or after December 31, 2003, AHCA Cost Reports must be filed using “SEXTANT”, the October 2003 Electronic Cost Report (ECR); the October 2003 Chart of Accounts which we provide as Home Health Agency Accountants; and instructions provided by AHCA. Further, these AHCA Cost Reports must be filed within the timeframe specified in the Plan. All required schedules MUST be completed or marked N/A. Note that Schedules I, J and J-2 are only required for providers on cost or payback reimbursement.

The provider of the Cost Reports home office cost report must each stand-alone. Do not indicate, “see home office cost report” on any schedule in lieu of completing the schedule. All schedules must be completed with all applicable information each year. Do not reference a prior year report as containing the information requested in lieu of completing the schedule in the current year cost report.

The recognized AHCA Cost Reports will be determined by utilizing the accrual method of Home Health Agency accounting in accordance with generally accepted accounting principles (GAAP).

Home Health Agency Accounting

The Provider may prepare the Cost Reports internally. However due to the complexity of the AHCA Cost Reports, not to mention your billing is at stake it’s highly recommended you hire a CPA Firm like Gustavo A Viera CPA who specialize in Home Health Agency Accounting.

 As Accountants we not only prepare and file your AHCA Cost Report, we can perform all the accounting, bookkeeping and tax services associated work with the financial statements required to complete the AHCA Cost Reports. We specialize in Home Health Agencies and do all the work in-house.

 We prepare AHCA Medicare Cost Reports for:
  •  Home Healthcare Agencies
  • Hospice Agencies
  • Skilled Nursing Facilities (SNF)
  • Renal Dialysis
  • Federally Qualified Health Center (FQHC)
  • Community Mental Health Centers (CMHC)
  • Physician Groups and Hospitals
  • Latest Reminder Notification from CMS

 

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