There is generally much confusion regarding the difference between medical supply charges and medical supply cost on the HHA cost report, and what needs to be entered where.

We have been asked countless times what should be entered on Worksheet C,III, lines 15-16.20, column 3 “Total Charges from HHA Record” on form 1728 – the HHA Medicare cost report.

Facilities know that they should be entering their medical supply costs (expenses) into column 5 of lines 12 – 13.20 of Worksheet A.

Once these costs are entered, every corresponding line on Worksheet C,III should have charges.  That means that if there are costs on line 12 of Worksheet A, there should be charges on line 15 of Worksheet C,III.  Likewise, line 13 of Worksheet A corresponds to line 16 of Worksheet C,III, and line 13.20 of Wksht A to line 16.20 of Wksht C,III.

The way to compute the charges, if you do not have them on record, would be to figure out:  for every dollar of medical supply costs, how much do you charge Medicare and other insurances?  Multiply that amount by the supply cost to get total charges.  For example, for a facility with $10,000 of medical supply costs which bills two dollars per dollar of cost, the charges on C,III would be $20,000.

For a facility which services only Medicare patients, the total charges would be the total charges on the PS&R report.

Disclaimer:  This blog does not contain legal advice. What it does contain are our best
explanations, advice, and suggestions to help facilities and cost report preparers to understand the cost report forms and offer suggestions for their preparation. Progressive Provider Services assumes no legal responsibility for the content of this blog, nor for cost reports prepared based on the content herein.