New York Codes, Rules and Regulations
Title 10 - DEPARTMENT OF HEALTH
Chapter V - Medical Facilities
Subchapter A - Medical Facilities-minimum Standards
Article 8 - New York State Annual Hospital Report
Part 442 - Reporting Principles And Concepts
Reporting Principles
Section 442.13 - Deductions from operating revenue
Current through Register Vol. 46, No. 39, September 25, 2024
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(a) In many instances, the hospital receives less than its full established charges for the services it renders. It is essential that reporting information reflect both the gross revenue and revenue "adjustments" resulting from inability to collect established charges for services provided.
(b) These revenue adjustments are called Deductions from Revenue and are of the following primary categories:
These deductions represent the estimated amount of current revenues that will not be realized as a result of credit losses.
These adjustments represent the difference between full established charges for individual services and the contractual rates received or to be received from third-party payors for services rendered.
These deductions represent the difference between full established charges and amounts received or to be received from indigent patients, voluntary agencies or governmental units on behalf of specific indigent patients.
These deductions represent adjustments for items such as courtesy allowances and employee discounts from the hospital's full established charges for services.
These adjustments represent amounts of patient service revenue posted but not billed to patients because the cost of billing and collection would exceed the amounts received.
(c) The above items must be recorded and reported as deductions from gross operating revenue on an accrual basis rather than as expenses.
