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 444 - Description Of Accounts
Income Statements
Section 444.7 - General

(a) An Income Statement is an accounting statement which reflects the financial results of a hospital during a reporting period.

(b) Hospitals are required to report all revenue and expense accounts in this section when such a function as defined in this manual exists, even though the activity is not separately organized within the hospital. The only circumstances under which the hospital need not report a revenue or expense account is when the patient services provided in a daily hospital services cost center is not provided in a discrete unit. For example, if pediatric patients receive care in the Medical/Surgical acute cost center, no reclassification of expense from the Medical/Surgical cost center to the Pediatric Acute cost center is required. No functional reporting of revenue and expense is required for daily hospital service cost centers.

(c) Where a function required by the reporting system is not separately organized within the hospital, but combined with one or more functions required by the reporting system, an analysis will be required to determine the gross revenue and direct expenses applicable to each required function. For instance, some hospitals may be combining the function of Electrocardiography (accounts 4290/7290) and Neurology-Diagnostic (accounts 4460/7460). In such cases, it is necessary to determine the total direct revenue and direct expenses relative to the two different types of services rendered, and if significant, as defined below, reclassification is required.

(d) The gross revenue reported in each required revenue account must be the actual gross revenue attributable to such identified functions. The expenses reported in each required expense account must represent the direct expenses related to each identified function. The direct expenses related to such functions may be determined based upon analysis.

(e) It should be noted that reclassification must be made for significant amounts of misplaced costs or revenue. Significant is defined, for the purposes of this Article, as an amount equivalent to an aggregate amount of misplaced costs or revenue in excess of the lesser of:

(f) However, in no case is a reclassification necessary if the aggregate amount of misplaced cost per cost center is less than $1,000.

(g) Since the zero level accounts presented in this manual are required, all zero level accounts presented herein, except as noted above, must be reported by the hospital where the related item or function exists in that hospital. A hospital will not be granted an exception to the reporting of an account solely because of accounting difficulty.