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Square Footage Statistics
They Still Matter
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In our
Medicare cost reporting practice, SRG
has observed a somewhat casual regard for the accuracy of square
footage statistics. We strongly believe such inattention can be
detrimental to the Medicare participating hospital. Even as most
hospitals are currently reimbursed under the prospective payment
system, square footage statistics remain an integral part of the cost
reporting process and are determinative of Medicare reimbursement in
many cases.
As a refresher, a significant percentage of hospital
overhead cost is allocated on the Medicare cost report using square
footage statistics. Accordingly, inaccurate square footage statistics
used on the cost report are likely to result in either an overstatement
of allowable Medicare costs on the cost report or an understatement of
those costs. Perhaps more importantly, the accuracy of an institution’s
reported square footage data appears to be an indicator of one’s
intended compliance with applicable Medicare law and regulation.
In
several high profile court cases, federal and state enforcement
agencies have brought costly actions against cost reporting
irregularities, often including the use of inaccurate or undocumented
square footage data. Measured against the likely multi-million dollar
settlements imposed in such cases, many have concluded that such flawed
cost reporting data represents an imprudent business risk. |
How
can SRG bring value to your institution? We have performed hundreds of
square footage studies for our clients. Our square footage product
provides a detailed analysis of every space in the hospital using a
computer assisted design system (CAD). We provide to you a turn-key
package of precise documentation that includes a summary schedule for
use on the Medicare cost report and supporting schedules showing room
by room measurements cross referenced to computer assisted design
drawings.
The hospital receives the CAD file along with a Microsoft
Excel file useful for tracking future changes to square footage
statistics. If questions arise in future Medicare audits, SRG stands
prepared to respond at no additional charge. Recalling the importance
of sufficient documentation to support your claim for Medicare
reimbursement, you may be confidently assured that SRG is fully
prepared to provide precisely that.
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