How Will COVID Affect My Cost Report?

How Will COVID Affect Cost Report Prep?

There are new software changes to many, if not all, of the cost report forms to accommodate changes due to COVID-19. These changes are for both COVID-19 revenues, such as grants, and for sequestration.

A line has been dedicated on each of the various forms for COVID-19 PHE revenues. The new COVID revenue lines on some of the forms are:

  • Line 31.50 on HHA (1728-94) Worksheet F-1
  • Line 16.50 on Hospice (1984-14) Worksheet F-2
  • Line 24.50 on SNF (2540-10) Worksheet G-3

Per CMS Instructions, these revenue lines are to be used for COVID-19 PHE funding (including SBA loan forgiveness, HHS funding, and provider relief funding). Such funding does not need to be offset on the cost report, unless the loan forgiveness was used to forgive a specific expense.

Since sequestration was suspended from May 1, 2020 through December 31, 2020, many forms have changes which affect sequestration calculations. Examples include:

  • HHA 1728-94 – no changes, since the sequestration amounts pulls directly from the PS&R. However, on the new form 1728-20 to be released later this year, sequestration will be calculated based on the number of days in the cost report year that had sequestration in place.
  • SNF 2540-20Worksheet E,I Part A: Sequestration now needs to be imported from the PS&R or entered directly on line 14.99, per the PS&R sequestration amount.  Worksheet E,I Part A: Sequestration on line 14.75 will calculate only for non-claims-based amounts, such as bad debt, based on the number of days in the cost report period during the “sequestration period”. Worksheet E,I Part B line 28.99 and Worksheets I-3 and J-3, if applicable, sequestration will calculate based on the number of days in the cost report period that fell during the “sequestration period”.

Need cost report software? Need help preparing your cost report?  At PPS we have over thirty years of cost reporting experience and are happy to share our expertise with you!  Contact us now for cost reporting assistance.

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.

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