Md. Code Regs. 10.37.01.02

Current through Register Vol. 51, No. 25, December 13, 2024

Section 10.37.01.02 - Accounting System; Hospitals

A. The Accounting System.

(1) The accounting system set forth in the Commission's "Accounting and Reporting System for Hospitals" issued in February, 1973, shall be used by all Section 556 hospitals, with the exception of those hospitals that are a part of the Department of Health and Mental Hygiene, for their fiscal year period beginning on or after April 1, 1973, and all subsequent periods.

(2) The "Accounting and Reporting System for Hospitals", also known as the Accounting and Budget Manual for Fiscal and Operating Management (August, 1987), is incorporated by reference, including the following supplements:

(a) Supplement 1 (September 7, 1988);

(b) Supplement 2 (August 25, 1989);

(c) Supplement 3 (June 9, 1990);

(d) Supplement 4 (December 20, 1990);

(e) Supplement 5 (August 30, 1993);

(f) Supplement 6 (January 2, 1995);

(g) Supplement 7 (May 6, 1996);

(h) Supplement 8 (April 7, 1997);

(i) Supplement 9 (May 4, 1998);

(j) Supplement 10 (April 7, 1999);

(k) Supplement 11 (March 6, 2000);

(l) Supplement 12 (July 9, 2001);

(m) Supplement 13 (September 30, 2002);

(n) Supplement 14 (March 29, 2004);

(o) Supplement 15 (August 1, 2005);

(p) Supplement 16 (March 25, 2006);

(q) Supplement 17 (April 10, 2007);

(r) Supplement 18 (April 6, 2009);

(s) Supplement 19 (February 9, 2010);

(t) Supplement 20 (May 16, 2011);

(u) Supplement 21 (June 5, 2012);

(v) Supplement 22 (March 3, 2014);

(w) Supplement 23 (July 28,2015);

(x) Supplement 24 (April 12, 2018);

(y) Supplement 25 (February 10, 2020);

(z) Supplement 26 (January 14, 2021);

(aa) Supplement 27 (October 12. 2022);

(bb) Supplement 28 (June 14, 2023; and

(cc) Supplement 29 (June 14, 2024).

(3) The Commission shall provide each Section 556 hospital under its jurisdiction with a copy of the Accounting and Budget Manual for Fiscal and Operating Management (August, 1987), which shall represent the official interpretation of accounting and reporting practices and procedures of the System.

(4) The Executive Director is authorized and empowered by the Commission to allocate specific items to specific accounts within the system when the allocations are necessary to assure uniformity of accounting procedures.

(5) Requests for exceptions to the system may be filed as provided in §C.

B. Accrual Accounting.

(1) A full accrual basis of accounting for revenue and expenses is required.

(2) Revenues shall be given recognition in the period during which the service is provided.

(3) Revenue shall be recorded at the full established rates regardless of the amounts actually paid to the hospital or on behalf of the patients.

(4) Revenue deductions shall be given accounting recognition in the same period that the related revenues are recorded.

(5) Expenses shall be given recognition in the period in which there is:

(a) A direct identification or association with revenue, as in the case of services rendered to patients;

(b) An indirect association with revenue, as in the case of salaries or rent; or

(c) A measurable expiration of asset costs even though not associated with the production of revenue for the current period as in the loss from fire.

C. Requests for Exceptions to System Manual.

(1) As provided by Health-General Article, §19-211(b), hospitals may file a written request for exception with the Commission.

(2) The Executive Director shall respond in writing promptly to the requesting hospital on receipt of the request acknowledging its receipt and providing the requesting hospital with a date by which the request shall be answered.

(3) If needed for evaluation of the request, the Executive Director will seek additional information from the appropriate source.

D. Review of Denial of Request for Exception.

(1) Any hospital denied an exception to the accounting system or manual may file a written petition to the Commission for a hearing to review the action of the Executive Director in refusing its request for exception.

(2) A petition for a hearing to review the Executive Director's action shall be filed with the Commission within 15 days of the date on which the aggrieved hospital was notified in writing of the action taken on the requested exception, and shall state the grounds for the petition.

(3) A hearing on the petition, at which the petitioner may be represented by counsel, shall be held within 30 days of the date on which the petition was filed, before a review subcommittee composed of three members of the Commissioners chosen by the Chairman for that purpose.

(4) The review subcommittee shall consist of at least two persons who have no connection with the management or policy of any hospitals or related institutions.

(5) Promptly after the hearing, the subcommittee shall report to the Commission, which shall make its decision within 45 days of the submission of the petition to review.

(6) The decision of a majority of the Commission, which shall be recorded in the form of a written decision filed with the Commission's office, shall be final, subject to the right of appeal in accordance with Health-General Article, §19-221.

Md. Code Regs. 10.37.01.02

Regulations .02 amended effective October 3, 1980 (7:20 Md. R. 1879)
Regulation .02 amended effective December 14, 1987 (14:25 Md. R. 2660); May 29, 1989 (16:10 Md. R. 1109); April 5, 1999 (26:7 Md. R. 543)
Regulation .02A amended effective January 8, 1990 (16:26 Md. R. 2793); February 4, 1991 (18:2 Md. R. 149); January 6, 1992 (18:26 Md. R. 2830); August 30, 1993 (20:17 Md. R. 1346); January 2, 1995 (21:26 Md. R. 2188); May 6, 1996 (23:7 Md. R. 553); April 7, 1997 (24:7 Md. R. 553); May 4, 1998 (25:9 Md. R. 680); April 5, 1999 (26:7 Md. R. 543); March 6, 2000 (27:4 Md. R. 454); July 9, 2001 (28:13 Md. R. 1216); September 30, 2002 (29:19 Md. R. 1524); March 29, 2004 (31:6 Md. R. 509); August 1, 2005 (32:15 Md. R. 1321); April 10, 2006 (33:7 Md. R. 673); June 4, 2007 (34:11 Md. R. 971); May 18, 2009 (36:10 Md. R. 717); April 5, 2010 (37:7 Md. R. 571); June 27, 2011 (38:13 Md. R. 756); July 9, 2012 (39:13 Md. R. 785); April 14, 2014 (41:7 Md. R. 422)
Regulation .02 amended effective 42:25 Md. R. 1543, eff.12/21/2015; amended effective 45:16 Md. R. 775, eff. 8/13/2018; amended effective 47:5 Md. R. 311, eff. 3/9/2020; amended effective 48:3 Md. R. 94, eff. 2/8/2021; amended effective 50:8 Md. R. 338, eff. 5/1/2023; amended effective 50:24 Md. R. 1042, eff. 12/11/2023; amended effective 51:23 Md. R. 1037, eff. 11/25/2024.