ABSTRACT
Introduction One of the more signi“cant yet less-understood aspects of hospital reimbursement is the formulation of the Medicare cost report. e cost report is similar in concept to a tax return, and its completion is mandatory if a hospital participates in the Medicare program. Of all the chapters in this text, the cost-reporting component is the most important because there is little information currently available that addresses this topic. Regardless of how a hospital is incorporated, a facility must submit the Medicare cost report 5 months after the “scal year ends. Many hospitals do not have the necessary resources or personnel to complete the cost report, so they outsource its completion to healthcare consulting “rms that specialize in cost reporting. e bene“ts of outsourcing the cost report is that external consultants are aware of recent changes in Medicare regulations; since many “rms solely work in hospital reimbursement, they have more expertise on how to complete the report. e downside to outsourcing is that the hospital has a loss of control, and management may not be cognizant of all the factors that aŸect hospital reimbursement.
