Reporting IDS home office costs for Medicare reimbursement

Under Medicare, providers that are part of a chain can be reimbursed for an allocable portion of allowable home office costs. Before a provider can be reimbursed for these costs, however, a home office cost statement must be submitted to the providers' fiscal intermediary. The statement provides a means of allocating certain home office costs to the provider components of a system so that providers can be reimbursed directly for these costs. The home office cost statement also offers a useful financial overview of the home office's operations in relation to the system's overall operations.