Posted June 24, 2002
Recent changes intended to clarify the 2001 Nursing Facility Cost Report Specific Instructions and Training Presentations regarding the completion of Schedule G (Ancillary Costs for Medicaid-Only Residents) are of particular interest for nursing facility bookkeepers, accountants, and/or cost report preparers.
It is important to note that therapy services provided by staff of a nursing facility only to residents of that nursing facility (and not provided to persons outside the facility) are not considered a separate business component, but are considered non-routine nursing facility services.
Shared Facility-level Costs
Facility-level costs that support the entire facility including therapy services do not need to be allocated and removed from the cost report. These costs include those related to
- the administrator,
- facility office staff,
- facility building and operational costs, and
- related central-office costs.
Other direct therapy-related expenses should be reported according to the instructions for Schedule G.
Services Considered Separate Business Components
Therapy services provided from a place other than the facility (which may or may not serve persons outside the facility) are considered a separate business component and the instructions and training presentations apply. This includes therapy services provided from
- a central office,
- a separate division/unit of a company, or
- a related company separate from the nursing facility,
The attorneys at Garlo Ward have experience in health law and regulations, and can answer your questions about cost report guidelines.
All information in this article is informational only and is not legal advice. Should you have any questions or a situation requiring advice, please contact an attorney.
Copyright 2004 by Garlo Ward, P.C., all rights reserved
Austin, Texas 78752-3714 USA
Telephone: 512-302-1103
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Email: Info@Garloward.com
