Which expenses should you include on your Medicare cost report?  All of them.

How’s that for a short answer?

To clarify, any expense that shows up on your trial balance should show up on the trial balance reclassification worksheet – Worksheet A of your Medicare cost report.  The subtotal of expenses before adjustments should equal the total expenses on your trial balance and profit and loss/ income statement.

Some expenses might end up being included on the trial balance but are really unallowable for Medicare cost report purposes.  Such expenses may include, but are in no way limited to, advertising expenses and charitable donations.  Expenses such as the above which are non-allowable will need to be offset “later on” via the appropriate adjustment worksheet (e.g., A-8 for SNFs and Hospices, A-5 for HHAs, A-2 for FQHCs).

This would mean that the final total expense on Worksheet A will differ from the trial balance, but the initial subtotal should still equal that of the trial balance, as stated above.

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 reporting process and offer suggestions for their preparation. Progressive Provider Services assumes no legal responsibility for the content of this blog, nor for cost reports or other reports prepared based on the content herein.