Md. Code Regs. 10.37.01.04

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

Section 10.37.01.04 - Accounting System: Related Institutions

A. The Accounting System.

(1) The accounting system set forth in the Commission's "Accounting and Reporting System for Related Institutions" issued in March, 1973, shall be used by all Section 556 related institutions for their fiscal year period beginning on, or after, April 1, 1973, and all subsequent periods.

(2) The "Accounting and Reporting System for Related Institutions" is incorporated in these regulations as if set forth in full.

(3) The Commission shall provide each section 556 related institution with a copy of "Accounting and Reporting System for Related Institutions" which may be amended pursuant to the Administrative Procedure Act, State Government Article, Title 10, Annotated Code of Maryland.

(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 §D, of this regulation.

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) Revenues shall be recorded at the full established rates regardless of the amounts actually paid to the related institution by, 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 case of losses from fire.

C. Manual.

(1) As may be necessary to assure uniformity of accounting and reporting procedures, the Commission may adopt a manual which will be supplemental to the system hereby adopted, to be incorporated in these regulations in the same manner as set forth in §A(2), of this regulation.

(2) The Commission shall provide each section 556 related institution with a copy of the manual, which may be amended pursuant to the Administrative Procedure Act, State Government Article, Title 10, Annotated Code of Maryland.

(3) Any manual adopted by the Commission shall be the official interpretation of accounting and reporting practices and procedures within the Related Institution Accounting and Reporting System.

(4) Requests for exceptions to the manual may be filed as provided in §D, of this regulation.

D. Requests for Exceptions to System or Manual.

(1) As provided by Health-General Article, §19-211(b), Annotated Code of Maryland, related institutions may file a written request for exception with the Commission.

(2) The Executive Director shall respond in writing promptly to the requesting related institution on receipt of the request, acknowledging its receipt and providing the requesting related institution 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.

E. Review of Denial of Request for Exception.

(1) Any related institution 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 related institution aggrieved 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 Commission 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 rendered in the form of a written decision filed in the Commission's office, shall be final, subject to the right of appeal in accordance with Health-General Article, §19-221, Annotated Code of Maryland.

Md. Code Regs. 10.37.01.04

Regulations .04 effective April 29, 1973