Question 1

What is Medicare & Medicaid cost report preparation?

Accepted Answer

Medicare and Medicaid cost report preparation is the process of compiling a provider's financial and statistical data into the standardized forms CMS and state agencies require to determine reimbursement. It involves reconciling costs to the general ledger, allocating expenses across cost centers, disclosing related-party relationships, and reporting statistical and wage data accurately, so the filing supports the reimbursement the provider is entitled to and withstands later review.

Question 2

Who is required to file a cost report?

Accepted Answer

Most Medicare-certified institutional providers must file an annual cost report. This includes skilled nursing facilities, hospitals and critical access hospitals, home health agencies, hospices, and FQHCs and RHCs. Many state Medicaid programs require their own cost reports as well. Filing deadlines are generally tied to your fiscal year end, and late or incomplete filings can trigger payment suspensions, so timely, accurate preparation matters.

Question 3

Why does cost report accuracy affect reimbursement?

Accepted Answer

Because the data on your cost report feeds directly into how you are paid and audited. Cost allocations, statistical data, and wage index inputs help set or settle your reimbursement, and errors can leave allowable costs unclaimed or invite adjustments. Accurate preparation captures what you are entitled to, while sloppy filings expose you to audit adjustments, recoupments, and, in some cases, compliance risk.

Question 4

What are related-party disclosures on a cost report?

Accepted Answer

Related-party disclosures identify transactions between your organization and entities under common ownership or control, such as management companies, real estate holders, or affiliated lenders. Cost report rules generally limit related-party costs to the related party's actual cost rather than the amount charged. Reporting these relationships correctly is essential, because missed or misstated disclosures are a common source of audit adjustments in skilled nursing and long-term care.

Question 5

Can you help if we are facing a desk review, audit, or reopening?

Accepted Answer

Yes. We support providers through Medicare Administrative Contractor desk reviews and audits, and we handle reopenings and appeals of settled reports. That includes responding to information requests, reconstructing support for reported costs, and challenging proposed adjustments that are not supported by the rules. Whether or not we prepared the original filing, we can step in to defend your reimbursement position.

Question 6

Do you prepare cost reports for providers outside Ohio?

Accepted Answer

Yes. While Pease Bell is headquartered in Cleveland, Ohio, we prepare Medicare and Medicaid cost reports for healthcare providers in all 50 states. Medicare forms follow national CMS standards, and we prepare state Medicaid cost reports to each program's specific formats and rate-setting rules, so multi-state operators can rely on consistent, coordinated cost reporting across their portfolio.

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Services: Cost Report Preparation