AGING AND DISABILITY SERVICES ADMINISTRATION

2007 NH "Dear Administrator" Letters

December 21, 2007

ADSA: NH # 2007-032
Quarterly Reporting of Nursing Home Credit Balances

Dear Nursing Facility /Home Administrator:

The department is implementing a new process for the reporting of nursing home credit balances. Before the new process, credit balances were investigated during the Trust Fund and Accounts Receivable audits done at Medicaid certified nursing facilities by Office of Rates Management personnel.

The new procedure will entail quarterly self-reporting of credit balances for all nursing home residents by Medicaid certified nursing facilities. The department hopes that quarterly self-reporting will reduce the number of outstanding credit balances and will encourage nursing facilities to rectify credit balances in a timely manner which will save money in interest for nursing homes. The department also hopes that quarterly self-reporting will shorten the length of the department’s Trust Fund and Accounts Receivable field audits at nursing homes.

RCW 74.46.100 (4) states, “Examinations of resident trust funds and receivables shall be reported separately and in accordance with the provisions of this chapter and rules adopted by the department.” The department believes that this means that all resident accounts receivables, not just those accounts receivables relating to Medicaid residents, should be reviewed during our audits and therefore, reported on the Nursing Home Credit Balance Report. Please ensure that all credit balances, regardless of payor source, are included on the report.

Attached are the new Nursing Home Credit Balance Report (Excel) and instructions for completing the report (Word). Please note that the reports are due to the department within 30 days after each calendar year quarter, or the next business day when the 30th day falls on a weekend or holiday, whether you have credit balances or not. Faxed and e-mailed copies of the completed reports will not be accepted. Mail your report, a copy of the aging report for the quarter, and supporting documentation for the refunded credit balances to:

Nursing Home Rates Section
Office of Rates Management
Post Office Box 45600
Olympia, Washington 98504-5600

The first report, for the period January through March 2008, is due on or before April 30, 2008.

Nursing homes who terminate the Medicaid program should continue to file the report until all credit balances have been cleared.

In accordance with WAC 388-96-217 (2) (b), the department may fine those nursing homes that do not timely submit the Nursing Home Credit Balance Report.

If you prefer to have the report via electronic format in Excel or have any questions about the new report, please contact your Medicaid rates analyst. If you do not know who your Medicaid rates analyst is, please call Linda Herrera at (360) 725-2498.

Sincerely,

Ken Callaghan, Chief
Office of Rates Management

cc: Rate Analysts

Interested Parties