Is a free service provided on the basis of presumptive eligibility allowable for charity on the S-10 worksheet? Our policy is to presume a patient who has been referred by a local free clinic to be eligible for charity care for the referred service.
Answer: The cost report instructions only indicate that the patient must meet the charity care/financial assistance policy to be counted on the uncompensated lines on the S-10 worksheet. Furthermore, 501(r) regulations allow for presumptive eligibility, so presuming patients who have been referred by a local free clinic to be eligible for charity care is reasonable. Those patients can be presumptively eligible for hospital charity care discounts. Note that if the patient presumptively qualifies for less than the full charity discount, the patient must have an opportunity to review the full policy and apply for the full discount if other qualifications are met.
This question was answered by: Rick Parker, executive director, CBIZ KA Consulting Services, and a member of HFMA’s New Jersey Chapter.
|What do you think? Please share your thoughts on this question in the comments section below.
The information provided through the Forum’s Ask the Expert service does not constitute legal advice, even when the advice is provided by lawyers. You need to obtain your own legal counsel for legal advice and consider the laws and regulations that govern your state. The content and opinions expressed are those of the Forum experts, and not that of their employers or of HFMA. HFMA does not endorse the material or warrant or guarantee its accuracy. The responses are based only on the specific facts or circumstances provided. Forum experts cannot be held liable for outcomes related to any information provided.
Pose another question to our CFO Forum experts.