All Medicare-certified facilities must submit a cost report each year. A facility which does not submit a cost report timely is considered to be not in compliance with Medicare requirements.
If a facility does not submit a cost report in time for the deadline, then the MAC (Medicare administrative contractor) will withhold all payments to the facility and send a warning letter.
If the facility does not submit a cost report after the warning letter, the MAC will request all payments for the entire year back. The facility will be considered to owe Medicare all of that money.
Once a cost report is submitted, even late, the MAC will release all payments on withholding. This may take some time. For more information, see our blog on how long it takes a MAC to approve a cost report.
Need help with your cost report or need cost report software? Contact PPS or visit our website. Thirty + years of cost reporting experience – we only do cost reports!
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.