CMS released a new Home Office cost statement form, 287-22, for cost reporting periods beginning on or after 10/1/2022.

The biggest change for preparers is that the new software requires electronic files, similar to the HHA 1728-20, SNF 2540-10, Hospice 1984-14, and Hospital 2552-10. The electronic, or ECR files, need to be submitted either via the MCReF online filing portal or on a CD or flash drive. For more information on electronic cost reports, signature pages, and online filing, see our blog on electronic cost reports.

What follows from the electronic filing requirement is that now there are Level I and Level II edits in the software. As in all other CMS-approved electronic software forms, Level I edits must be cleared in order to create the ECR files. Level II edits need not be cleared but must be explainable to the MAC.

The change for preparers means mostly getting used to the new schedules and schedule names. Minimal additional information necessary, thought there is some, especially since several of the cost centers on Schedule A (formerly Schedule B) have changed, and a few have been added. Similarly, while in the past missing information may have been ignored, due to the new ECR files and Level I and Level II edits, more information may be necessary to pass the edits.

All of the schedule names have changed, many of them compatible to other cost report forms, and there are some new schedules, as well.

In general, the forms are more organized and the logic is easier to follow. We predict that, while it will take some getting used to, the amount of additional work for the facilities and preparers will not change much in the long run.

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Below is a detailed list of the changes to the schedules:

• The former A-series (A-1, A-2, and A-3) has now become the S-series (S signature page, S-1, and S-2 Parts I, II, and III)
• The former B-series (B, B-1, and B-2) has now become the A series: Trial balance expenses are reported on Schedule A instead of Schedule B, reclassifications are reported on Schedule A-6 instead of B-1, and capital assets are reported on A-7 instead of B-2.
• Adjustments to expenses are reported on A-8 instead of on Schedule C, and related party expenses are reported on Schedule A-8-1 instead of D.
• Direct allocation of costs are now reported on the B-series instead of the E-series, with capital cost allocation on B, Parts I, II, and III, and non-capital cost allocation on B-1, Parts I, II, and III.
• Functional allocation of capital related costs are reported via the C-series, with stats entered into C-1, Parts I, II, and III. Costs to be allocated are entered into C, Part III line 53. The software calculates the costs to be allocated via Schedule C, Parts I, II, and III. In the past, Schedule F, II and F, respectively, served this purpose.
• Functional allocation of non-capital related costs, which used to be on one schedule, Schedule F-1, is now reported similar to the C-series. Stats are entered into D-1, Parts I, II, and III, and costs to be allocated are entered into D-1, Part III, line 53. Costs are calculated by the software via Schedule D, Parts I, II, and III Note that, for both the C and the D series, there is no longer the need or ability to choose the line number in the column heading; all column headings are pre-printed, corresponding with Schedule A line numbers.
• Schedule E allocates pooled costs among Healthcare Provider, Non-Healthcare, and Region/ Division components, replacing Schedule G, Part I, prior to allocating the pooled costs to individual components via Schedule E-1, Parts I, II, and III. E-1 replaces Schedule G, Part II.
• The F-series gives a neat summary of direct, functional, and pooled costs for each facility, with F Parts I, II, and III reporting capital related cost allocations and F-1, Parts I, II, and III reporting non-capital related cost allocations.
• The F-2 series similarly reports interest income.
• Schedule G is the balance sheet, replacing Schedule J. Schedule G-1 is the statement of revenues and expenses, replacing Schedule I.

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

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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.