Medicare spending totaled nearly $800 billion in 2019, accounting for 21% of national health expenditures. The Centers for Medicare & Medicaid Services (CMS) bring a lot of money to the table each year in the form of reimbursements to providers for the Medicare patients serviced.
Medicare requires all providers to submit an annual Medicare Cost Report to track expenses and establish the amount of reimbursement due to the individual providers (and often how much needs to be returned from estimated reimbursements already collected in excess of the calculated amount) for services rendered for Medicare patients.
The cost report contains provider information such as facility characteristics, utilization data, cost and charges by cost center (in total and for Medicare), Medicare settlement data, and financial statement data. CMS maintains the cost report data in the Healthcare Provider Cost Reporting Information System (HCRIS). For some facility types that are heavily dependent on Medicare reimbursement to stay profitable (like Critical Access Hospital facilities, for example), it is important to monitor their financial status with Medicare throughout the fiscal year. They need to know if they are going to be receiving additional reimbursement or paying monies back to the government at the time of the Cost Report submission.
The CostFlex Medicare Cost Report Estimator provides clients with the ability to simulate the unique modeling of the Medicare Cost Report and report their standing with the government as often as they would like during the year. These client facilities will remove the guesswork (or the many hours of manual calculations required to attempt to understand their Medicare reimbursement status) involved in knowing where they stand prior to the actual Cost Report submission.
Imagine knowing if you have a refund coming and if you are able to spend money as needed, or knowing that your organization is going to owe money so you can start putting these payments aside, without being surprised at the end of the financial year.
THE BENEFITS OF MEDICARE COST REPORT ESTIMATOR SOFTWARE
Smaller hospitals that don’t have massive budgets or large teams of accountants depend on Medicare cost report estimation reporting technology to keep track of their standing with the government throughout the year. Without regular Medicare cost reports, an organization won’t know whether they’ll owe the government money at the end of the fiscal year or whether they should expect something back. Accurate Medicare cost estimation helps hospitals manage their budgets more efficiently and avoid noncompliance issues resulting from an unfortunate situation where they have an inability to pay the CMS.
Many healthcare organizations hire third-party services to do their Medicare cost report preparation, but this practice has several drawbacks. For one, it’s more expensive than handling the reporting internally. Making appointments with an outside service and exchanging the necessary information also involves more time-consuming legwork. Most importantly, hospitals that rely on external Medicare cost report services usually don’t do so more than once annually, leaving them in the dark about their financial standing with the government for most of the year. With our Medicare Cost Report Estimator software, organizations can receive frequent reports as often as they like and for typically less money than a single consultant manual approach.
THE COSTFLEX MEDICARE COST REPORT ESTIMATOR SOLUTION
Our Medicare Cost Report Estimator software offers the same benefits and features as our primary Cost Accounting solution, but it’s tailored to the unique Medicare cost reporting methodology in particular. It automates, analyzes, and reports Medicare cost estimation data in a single interface and can be run as much or as little as your organization desires. Because its functions are automated, the staffing requirements for Medicare cost report preparation are minimal.
When a client organization logs onto CostFlex Total Cost Accounting, they will simply choose between their actual cost accounting model or the Medicare cost model—they are unique datasets and models within a single CostFlex interface.
To have the Medicare Cost Report Estimator, you must first own the CostFlex Total Cost Accounting software license. We routinely complete installation for our full Cost Accounting software suite in eight weeks or less, but our Medicare Cost Report Estimator presents a slightly different situation. Unlike our primary solution, which uses activity-based costing methodology, the Medicare Cost Report Estimator uses an alternative model based on Medicare rules. Your dedicated CostFlex installation project manager will assist your staff in creating the Medicare cost report model that will run independently of your actual cost accounting model and reporting.
CostFlex provides the highest-quality customer support services in the healthcare decision support software industry. All support inquiries are answered by development programmers who have personal experience with our Medicare Cost Report Estimator software. We guarantee a response in no more than 48 hours, but we can resolve the majority of issues at the time of your call.
UPGRADE YOUR MEDICARE COST REPORTING METHODS
CostFlex’s Medicare Cost Report Estimator solution is the most affordable, efficient, and accurate way for hospitals to predict their Medicare payments and remain in full compliance with the government. Request a product demonstration to learn more about this tool before committing to a purchase. If you aren’t satisfied with our Medicare Cost Report Estimator after becoming a CostFlex client, we’ll commit to a full, unconditional refund for up to three months after installation. For questions about Medicare cost estimation reporting or any of our other products, contact us by phone or online.