How do hospitals that have demonstrated meaningful use record the payments?
Answer: In general, I’ve seen two options:
- Recorded as other income in the period in which the payments were received.
- Though not common, recorded as deferred revenue and amortizing the life of the recorded asset against the cost of the electronic health record.
In addition, this guidance may provide more in-depth information.
This question was answered by: David A. Williams, FHFMA, CPA, partner, Horne LLP, and is a member of HFMA’s Mississippi Chapter.
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