Transmittal 18: Critical Changes and Best Practices for Cost Reporting in Healthcare
- Julia R. Jesuit
In late 2022, the Centers for Medicare & Medicaid Services (CMS) issued Transmittal 18 (2552-10) with significant updates and changes to cost reporting in the healthcare industry. These updates, effective for Cost Reporting Periods beginning on or after October 1, 2022, bring about several alterations to the cost reporting process, impacting various aspects of the system and introducing changes that have a profound impact on Medicare Disproportionate Share Hospital (DSH) reporting, Worksheet S-10 Uncompensated Care Cost reporting, and Medicare bad debt reporting.
Transmittal 18 introduces a range of updates that healthcare organizations must be aware of and adapt to. These updates include:
The expanded data requirements mandated by Transmittal 18 will undoubtedly impose an additional workload on healthcare providers and increase the likelihood of heightened audit scrutiny. As such, proactive measures must be taken to ensure compliance and achieve accurate reporting, enabling healthcare organizations to navigate the intricate landscape of cost reporting with precision and effectiveness.
The level of detail required in reporting will require adjustments to current processes and coordination with IT departments to capture the necessary data elements. Compliance with the new instructions is crucial to avoid cost report rejection and audit extrapolations that could lead to decreased reimbursement. Hospitals should not delay preparations until the cost report filing deadline to mitigate these risks. Proactive efforts should be made to account for the new templates and required data, ensuring compliance and accurate reporting. By addressing these changes promptly, hospitals can navigate the complex landscape of cost reporting and optimize reimbursement while mitigating compliance and audit risks.
Several other noteworthy updates emerge from the transmittal, encompassing a range of significant developments, including:
In light of the significant revisions and new requirements introduced in Transmittal 18, it is crucial for healthcare organizations to seek guidance and support to navigate the complex landscape of cost reporting. Contact your CRI advisor for guidance in navigating Transmittal 18 successfully and to ensure compliance, accurate data reporting, and maximizing financial performance.
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