New York State Health Care Reform Act (HCRA)

March 18, 1997

Re: 1997 Statewide Bad Debt and Charity Care Pool Reporting

Dear Administrator/Controller:

Chapter 639 of the Laws of 1996, the Health Care Reform Act (HCRA), continued the Statewide Bad Debt and Charity Pool through December 31, 1999.

Enclosed please find revised reporting forms for hospitals to use in calculating and paying their 1997 liability to the Statewide Pool. This form should be used by hospitals to contribute 1.00% OF NET INPATIENT REVENUE received for discharges January 1, 1997 and thereafter. Note that net inpatient revenue received must include recoveries (amounts received on 1997 accounts receivable previously written off as uncollectible).

This revised form has been simplified and closely follows the 1997 Public Goods Pool Hospital Inpatient Services Report. Providers are advised to have the Public Goods Pool report on hand when completing their Statewide report.

IMPORTANT NOTE: The due date of the January 1997 report will be April 10, 1997 (the same due date as the February 1997 report).

You are reminded to please utilize the 1996 reporting forms previously provided for monies received in calendar year 1997 for services provided to patients discharged during 1996. The 1996 reporting forms are required to be filed monthly during 1997 even if no activity is reported. For 1995 and prior, no report is required unless monies (including recoveries - see note above) are received relating to such periods, in which case the appropriate year´s reporting form would be submitted. To ease the reporting burden on hospitals, any recoveries received during 1997 related to discharges prior to January 1, 1997 may be grouped and reported on the 1996 reporting form.

The Health Care Reform Act continues an exemption for 1997 for those voluntary non-profit and proprietary general hospitals which have been deemed Financially Distressed in accordance with Part 86-1 of the Commissioner of Health Administrative Rules & Regulations. Effective January 1, 1998, financially distressed hospitals will be required to pay 25% of the respective program rates (i.e., 1% of net inpatient revenues) and beginning January 1, 1999, this requirement will increase to 75% of the respective program rates. However, as in past years, such hospitals must submit a monthly report. Financially Distressed hospitals which fail to submit their report will have distributions withheld until all reporting requirements have been met.

Please be aware that all figures and calculations shown on your reporting forms are subject to audit by the New York State Department of Health and also by your independent accounting firm. Hospitals should endeavor to follow instructions closely and verify the accuracy of their calculations. The Office of Health Systems Management will be comparing reported net inpatient service revenues received for a program year with net inpatient services revenue from the institutional cost report for that same year. If large discrepancies exist, hospitals will be required to substantiate their figures with appropriate backup documents.

The reporting form attached provides the capacity to reflect overpayments or underpayments made by your facility to the 1997 Statewide Pool as a result of using the 1996 Statewide Pool forms for the month of January 1997.

All monthly checks and reports should be submitted to:

Mr. Jerome Alaimo, Pool Administrator
Office of Pool Administration
Excellus BlueCross BlueShield, Central New York Region
344 South Warren Street
Syracuse, New York 13202

Remittance Advices and checks are to be received (not postmarked) by the Pool Administrator in accordance with the schedule listed in the General Instructions. Failure to comply will result in distributions being delayed. Distributions will resume on the next regular distribution date after all reports are current.

Should you have any questions concerning the foregoing or the enclosed forms, please contact Mr. Thomas Person of the Bureau of Financial Management and Information Support at (518) 474-1673.

Sincerely,

Mark H. Van Guysling
Assistant Director
Division of Health Care Financing

Enclosures