Medicare PS&R Changes

As announced in April 2007, CMS is redesigning the PS&R. The new system, which will be available soon, will be utilized to file and settle all cost reports with fiscal years ending February 28, 2007, and later.

Cost reports with fiscal years ending prior to February 28, 2007, will continue to be filed and settled utilizing the current Legacy PS&R system. As a result of this transition, the Legacy PS&R system will not produce reports containing data for year ends after February 28, 2007.

Impact to our clients:

• There will be a short time period during which interim PS&R reports will not be produced. CMS states that the redesigned PS&R system will be available to produce reports for providers with fiscal years ending February 28, 2007, and will be available for cost reporting purposes. Providers using PS&R data to calculate contractuals take note.

• The Legacy PS&R, for paid dates after March 2007 will contain claims data only for cost reporting periods ending prior to February 28, 2007 (December 31, 2006 year-end hospitals). Therefore, any column with a year end date on or after February 28, 2007, will no longer report any data and will be populated with zeroes.