Providers have until September 2, 2012 to change their Medicare Cost Report year end to December 31. If you wish to change your cost report year end to December 31 and have good cause your intermediary/MAC must receive your request by September 2, 2012. Typically converting your cost reporting period to a calendar year end constitutes good cause.
PRM I Section 102.3 reads as follows:
Changing of Cost Reporting Periods.—Per (42 CFR §413.24 (f)(3))and (PRM Part I § 2414.3) a provider may change the cost reporting period if a change in ownership is experienced, or if the following occurs: Provider request the change in writing from the contractor; the provider’s written request must be received by the contractor 120 days or more before the close of the reporting period which the change proposes to establish; contractor determines that good cause for the change exist. The contractor must notify CMS of the authorized change 30 days or more before the close of the reporting period which the change proposes to establish to allow the administration sufficient time to adjust its records. For example, where a provider wishes to change the ending date of its cost reporting period from December 31, 2007 to July 31, 2007 the provider’s request for a change must be received by the contractor 120 days or more before the July 31, 2007 date on which the change is to take effect.
Such a change may be made only after the contractor has established that the reason is consistent with the purposes and intent of the program. Under the foregoing circumstances, the provider may file a cost report for a period of not less than one month or not more than 13 months. A change made primarily to maximize reimbursement in any one period is not acceptable. Any request for a period in excess of 13 months must be approved by CMS.
Providers owned and/or operated by governmental entities using fiscal year ending dates established by local law may require changes in the reporting year ending dates as a result of legislative action. In such situations, a provider with the approval of its contractor may revise its cost reporting period to conform to the new fiscal year established by the applicable lawmaking body. A transitional period report covering the period initially affected by the change should be filed, provided it covers a period of not less than one month or more than 13 months.
If you are interested in converting to a calendar year end for cost reporting purposes, please contact our office in the next few days so that we can examine any impact of the change in year end and prepare your request if needed.