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 442.17 - Inventories
Current through Register Vol. 46, No. 39, September 25, 2024
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(a) Inventories reflect the cost of unused hospital supplies. Any generally accepted cost method (e.g., FIFO, LIFO, Average, etc.) may be used as long as it is consistent with that of the preceding accounting period. Cost of inventories based on the last invoice price is not an acceptable method for determining such cost.
(b) Inventory accounting record systems are required, consistent with the method of the inventory valuation employed. Perpetual inventory records are recommended but not required. Physical valuations must be made at least once a year and the accounting records, if applicable, adjusted to such valuations.
(c) Inventory usage records are required to be maintained for all inventories that are distributed and used by more than one cost center in the hospital. It is recommended that a formal requisition system be used for this purpose. In all cases, the cost of non-billable supplies used during the period must be distributed to the user cost centers, preferably on a monthly basis.
