Understanding HCFA-2552-92 cost reporting forms - United States.Health Care Financing Administation

Healthcare Financial Management, Oct, 1992 by W. Coleman Powell, Derek A. Pierce

Worksheet A-7 accumulates old and new capital assets. This worksheet has been expanded into three parts:

Part I provides an analysis of old capital with one additional column added to account for "Fully Depreciated Assets."

Part II now records new capital assets (including land, land improvements, buildings and fixtures, fixed equipment and movable equipment).

Part III documents allowable capital related expenses such as taxes, depreciation, leases, insurance and interest. These capital related expenses are apportioned to old capital using the ratio of old assets to total assets.

Worksheet B allocates overhead costs to revenue-producing areas through the single "step down" method of allocation. This worksheet allocates capital and general service costs to the appropriate cost centers based on the statistics in worksheet B-1. This worksheet also has three parts:

Part I still allocates general service costs. It has four new columns for capital, replacing the two columns used in previous cost reports. These new columns correspond with the revisions made in worksheet A.

Part II used to be used to allocate all capital costs. Now it will be used to allocate old capital only.

Part III is a new worksheet that allocates new capital described in worksheet A. For those hospitals that directly assign capital costs, column 0 will be used for new capital cost.

Worksheet B-1 provides the basis (or method) for allocating overhead costs to the revenue cost centers in worksheet B parts I, II and III. The changes in this part of worksheet B are similar to the other parts of worksheet B, and make it necessary to separate old and new capital statistical information.

Worksheet D does not require any special information other than the normal settlement data, since the cost report is automated. Worksheet D has five parts:

Part I apportions inpatient old and new routine capital costs. Two per diems are calculated: one for old inpatient capital cost (worksheet B part II) and one for the new inpatient capital cost (worksheet B part III).

Part II apportions old and new inpatient ancillary capital costs. This worksheet calculates two inpatient ancillary service cost-to-charge ratios--one for old capital cost (worksheet B part II) and one for new capital cost (worksheet B part III). In addition, both ratios use charges from worksheet C.

Part III is no longer being used to allocate outpatient service cost but specifically to apportion "inpatient routine service other pass through costs." In the past, all inpatient pass through costs were reported on worksheet D parts I and II. However, now that capital is prospective, pass through costs (such as non-physician anesthetist cost for qualifying hospitals only, swing bed adjustment amounts and medical education costs) must have their own worksheet.

Part IV apportions inpatient ancillary service other pass through costs.

Part V apportions medical and other health services costs (outpatient). This new worksheet replaces the old Part III in worksheet D.