N.J. Admin. Code § 8:31B-4.61

Current through Register Vol. 56, No. 21, November 4, 2024

Section 8:31B-4.61 - Reports of costs and revenues

(a) Expenses incurred and revenues generated by a hospital for items not included in the definitions of Services Related to Patient Care (i.e., Routine Services. Ambulatory Services, Ancillary Services, Patient Care General Services, and Institutional Services) are classified as either other operating expenses and revenues (determined per 8:31B-4.131 ) or non-operating revenue and are to be accounted for separately to determine if and how they will be applied to Costs Related to Patient Care and the Capital Facilities Allowance to determine the hospital total financial elements or the Current Cost Base. There are three cases into which income is classified:

1. Case A--Expenses and revenues related to activities which the hospital has selected to engage in but which are not an integral part of, or necessary for, the provision of patient care. Such expenses and revenues are netted against each other.

2. Case B--Expenses and revenues related to activities which the hospital has elected to engage in and which are an integral part of, or necessary for, the provision of patient care. Such expenses and revenues are netted against each other.

3. Case C--Expenses and revenues related to activities which are specifically included under 8:31B-4.62 through 4.66. Expenses and revenues are not netted against each other.

(b) Items of other operating expense and revenue are excluded from Services Related to Patient Care reporting centers through reporting in 8:31B-4.131. Other operating expenses and revenues so determined, in addition to non-operating revenues, are to be classified in 8:31B-4.131, to account for all revenue and expense transactions of the hospital's Unrestricted Fund per the hospital's financial statements. Accounting differences between the hospital's financial statements and the Financial Elements Report are to be reconciled per 8:31B-4.131.

(c) Other operating expenses and revenues and non-operating revenues are to be categorized below as:

1. Separately reported health care services;

2. Education and research;

3. Sales and services not related to patient care;

4. Patient convenience items;

5. Administrative items; and

6. Other income.

N.J. Admin. Code § 8:31B-4.61

Amended by R.1993 d.593, effective 11/15/1993.
See: 25 N.J.R. 3117(a), 25 N.J.R. 5149(a).
Amended by R.2006 d.27, effective 1/17/2006.
See: 37 N.J.R. 2165(a), 38 N.J.R. 667(a).
In (b), corrected reference from "N.J.S.A." to "N.J.A.C."; in (c)1, substituted "Separately reported" for "Excluded."