Home Health Care Accounting Is Challenging
Home Health Care Accounting Is challenging, not because it’s different from other accounting practices, because of the level of detail your financial statements must have in order to properly file your Home Health Care Agency Medicare Cost Reports.
Our Home Health Care Accounting services specialize in the field of home health care accounting, Medicare Cost Reports and other regulatory requirements.
The narrower aim of home health care accounting and our Home Health Care Accountants is to assemble and structure information on the health care system that is needed to hold the providers of health care formally accountable for the cost and the quality of the products and services they deliver. Our Home Health Care Accountants seek to measure the financial outcome of the myriad decisions made in a business during a quarter or full year.
The challenges of home health care accounting can be illustrated the chart below:
The fundamental statement in this chart is the company’s statement of financial position. It presents dollar estimates of the real, financial and intangible assets to which the company has legal title, all of the debt it owes and the difference between total assets and total debt, which is the company’s net worth, also called owners’ equity.
Health Care Accounting Accountants understand the reporting requirements of a Home Health Care Agency via the Medicare Cost Reports. A typical business can group all its sub-contractors into a single line item on its financial statements. Home health care accounting is much different. You must track and break out the individual disciplines of the sub-contractors on your financials (i.e. PT, OT, ST, HHA etc). If these are grouped together, preparing your Medicare Cost Report will be a nightmare. Furthermore, the corporate tax returns must match the Medicare Cost Reports. Which means that if you’re chart of accounts is not sufficiently detailed the preparation of both your Medicare Cost Reports and corporate tax returns will be impossible.
A rejection of your Medicare Cost Report by Palmetto GBA could mean your payments from Medicare will be suspended.