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Volume 21.05

We previously reported regarding the impact of the COVID-19 PHE and Medicare cost reports; however, based on numerous inquiries, we are pleased to provide the following information.

Filing Deadlines – For cost reports covering periods through December 31, 2020, a sixty (60) day extension has been provided.  September 30, 2020 cost reports are due on or before April 30, 2021.  December 31, 2020 cost reports are due on or before July 31, 2021.  This filing extension is applicable for all provider types.

SBA Loan Forgiveness – Do not adjust allowable costs on Medicare cost reports for any portion of SBA loan forgiveness!  The amount of any loan forgiveness is reported as revenue on the following lines of the respective cost report:

  • Hospitals and SNFs – Worksheet G-3, Line 24.50
  • HHAs and ESRDs – Worksheet F-1, Line 31.50
  • Hospice – Worksheet F-2, Column 3, Line 16.50
  • FQHC – Worksheet F-1, Line 28.50
  • CMHC – Worksheet F, Line 20.50

Provider Relief Fund Revenue – Do not adjust allowable costs on Medicare cost reports for any portion of earned Provider Relief Fund Revenues!  Revenues are to be reported consistent with reporting SBA loan forgiveness (see above).

Expenses Relating to Securing SBA Loan Forgiveness and Reported as Use of Provider Relief Funds – These expenses are reported as administrative and general, patient care expenses, and other expenses in the same manner as if there was no COVID-19 PHE.  For example, COVID-19 bonuses or additional compensation are to be reported with the salaries and wages of those employees receiving the bonuses.  Protective equipment and supplies are to be reported where such expenses would be normally reported on the respective cost report.

This is extremely important, as cost report data is used directly or indirectly in the determination of reimbursement rates to the respective provider.  Do not separately report COVID-19 PHE expenses as non-allowable costs or remove those costs from allowable costs on the cost report submission.

Employer’s Social Security Tax Payment Deferral – Those providers that elected to defer payment of the employer’s share of the social security tax should include the tax on the cost report for the year during which the expense was incurred, even though not paid.  Special rules apply if payment is not made in the year following the end of the cost reporting year.  In such cases, the provider should secure appropriate reimbursement advice regarding handling the cost and the subsequent payment.

Further information regarding these matters is available here.


The Health Group, LLC has scheduled to return to live programming on September 13-14, 2021 with the Hospice Financial Management Academy.  This program will be held at the Paris Hotel & Casino, Las Vegas, Nevada.  There will be limited attendance.  More details will be forthcoming.