CMS has introduced the new Medicare cost report form 2540-24 for skilled nursing facilities. This form is for all cost reports ending 9/30/25 and later.

There are many changes to the new form, which will necessitate extra time gathering information and preparing the report. We highly recommend watching our webinar on this topic.

Note that, despite many rumors, per CMS there will be no filing extension for 2025 cost reports. Cost reports are still due on their regulated due date, which, for 5/31 year ends will be June 1, 2026.

As such, preparers would be wise to start working early to make sure they have all of the necessary new information.

Of course, at PPS, we can help you prepare your cost report and navigate all the new requirements as painlessly as possible. We are also proud to offer you Excel-based, user-friendly 2540-24 software that is completely up-to-date on all CMS requirements.

Most notable changes include the following:

1. New Cost Centers on Worksheet A. Note that some of these will result in new stats required on Worksheet B-1:
   • Quality Assurance & Program Improvement
   • Radiology broken out into diagnostic and therapeutic
   • Speech broken out into Speech and audiology
   • Drugs broken out into drugs charged to patients and IV solutions
   • Appliances & Equipment
   • Blood & Blood Products
   • Blood Transfusions/Processing/Storage
   • New cost center for Preventive Vaccines, which results in a new method of reimbursement calculation – make sure to enter line 80 vaccine costs on A, vaccine charges on C, and vaccine PS&R charges on Worksheet D
2. New columns on Worksheet A:
   • Column 1 is still salary
   • Column 2 for contracted labor
   • Column 3 is total labor costs
   • Column 4 for all other (non-labor) costs
3. Note: There is no longer a line for Other Long Term Living, nor corresponding stats on S-3.
4. S-3 Stats (census, discharges, and admits) and G-2 revenues need to be broken out further into the following. Note new breakout of revenues by payor on G-2, including ancillary revenues by payor:
   • Medicare FFS
   • Medicare HMO
   • Medicaid FFS
   • Medicaid HMO
   • All Other
5. CMS is cracking down on related party! New edits require more detailed related party information on A-8-1 Part II and linking A-8-1 Part I entries to their corresponding A-8-1 Part II entry.
6. Worksheet C now also includes inpatient charges, not just ancillary.
7. New Worksheet C-6 for reclassing charges from one C line to another, similar to Worksheet A-6
8. There are several new S-2 questions relating to the following:
   • Date Certified for Medicare
   • Laboratory & CLIA ID Number
   • Radiological Department
   • Ambulance Service
   • Professional Services purchased outside of the local area labor market
9. Worksheet A-7 Part II – Reconciliation of Capital Cost Centers, similar to Home Office form 287-22.

Contact Us or Call Now to obtain free complimentary whitepapers on the new 2540-24 skilled nursing facility software.

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.

For information or assistance, we are, as always, here to help! Contact Us via email, website, or call 800-447-2540/ 248-968-4100 for our renowned customer service.

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.