Here’s the Great News for MVI Clients: There’s very little you will need to change!!!
Last year CMS proposed new regulations changing the hospice cost report to level of care reporting. Initially, we responded like everyone else with an expanded chart of accounts to meet this requirement. We greatly disliked this bloated COA as the more accounts you have, the more difficult it is to manage…and MVI wants laser-beam focus on management of a hospice! The #1 priority for your accounting system should be the management of the organization. All other needs are secondary.
Then we had the breakthrough! Rather than flooding accounting systems with thousands of new accounts, we developed the Allocator, an application that we are incorporating into our System 51 process (we have a 51 step process for every cost report we prepare) which allows a hospice to keep its current MVI chart of accounts, add only a handful of new accounts and the Allocator will handle the allocation of costs in the Hospice Medicare Cost Report. Whoa!
Of course, CMS delayed producing final regs (contrary to reports, there is no final set of regs even at this point), but we are ready for full compliance with the level of care costing requirements.
Cost report accounting should be a simple, once-a-year activity.
If MVI Completes Your Cost Report:
- You will not need to add thousands of new accounts.
- You will not need to break out your direct costs by level of care or even make monthly/annual allocations.
- You likely will not need a GL Restructure (we can still help CYMA users with a GL Restructure if you want to clean up your accounts or move to the MVI Chart of Accounts).
- You will need to provide us with a bit more information when you send us your Cost Report submission template; MVI will keep you updated with this information.
- PS&R Reconciliation will be Required—Any differences between Patient Days processed in the Cost Report and Patient Days displayed on the PS&R Report must be disclosed in a Reconciliation Report, MVI’s internal processes creates this Reconciliation Report for you!!!
Our approach is to import your trial balance into our software along with submission template data. The Allocator will make allocations by level of care using the most appropriate allocation base, usually revenue or patient day. Those allocations will appear on Worksheet A-6 of the cost report and feed costs to the appropriate level of care Worksheets (A-1 through A-4).
We like this approach because it’s simple for hospice organizations, totally transparent in the cost report and it provides numbers we can feel confident about. And we don’t have to change your submitted trial balance. We believe we can accomplish this without requiring much additional time from our clients.
Multi-View will keep you posted on other cost report issues as they arise as MVI prepares more hospice cost reports than any other entity. Is this exciting or what?