N.Y. Comp. Codes R. & Regs. Tit. 10 § 444.8 - Operating revenue accounts-general

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(a) Hospital revenue consists mainly of the value, at the hospital's full established rates, of all hospital services rendered to patients, regardless of amounts actually paid to the hospital by or on behalf of patients. The objective of patient service revenue reporting is to compile complete and accurate information, on the accrual basis, of gross revenue, by revenue centers and by inpatient and outpatient classification, and a record of revenue deductions, classified by type.

(b) Patient service revenues must be reported in such a manner as to clearly identify these revenues with the functional ambulatory and ancillary services cost centers and the discrete daily hospital services cost centers of the hospital. Revenues of revenue producing cost centers are needed for comparison with the expenses of the center, so that operating performances can be evaluated.

(c) In addition to patient service revenue, hospitals obtain revenue from sources and activities only indirectly related to patient care. These "other" operating revenues typically consist of tuition revenue, parking lot revenue, nonpatient food sales, etc.

(d) Regardless of the source of hospital revenue, it is important that it be reported for on the accrual basis. This basis of reporting requires that revenue be recognized and reported in the time period it is earned, irrespective of the timing of the cash flow between the hospital and other parties. No other basis provides the necessary qualities of completeness, accuracy, and usefulness of financial data and/or the proper basis for matching revenues with expenses. The requirement for accrual reporting is only that the reports be prepared on the accrual basis and not that the books be maintained on that basis throughout the reporting period. Hospitals will be permitted two reporting periods in which to meet the accrual reporting requirements. The Health Care Financial Administration (HCFA) will consider requests for waivers where a State law requires other than full accrual accounting.

(e) The operating revenue accounts in the Listing of Accounts are classified into five categories.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 10 § 444.8