Category Archives: Accounting

Long Term Care Update

Nursing-homeby Rachel Owens

There is a proposed Medicare rate increase on the drawing board for skilled nursing facilities.  If the proposed rule (CMS-1605-P) is approved by CMS, there will be a market basket increase of 2% beginning 10/1/2014. This will result in an estimated economic impact on the country is $750 Million in FY 2015.  There are also wage index changes on the horizon.  These wage index reductions/increases vary by region.  In addition there are upcoming changes to the Medicare reimbursable bad debt percentages.  For fiscal year 2014, the reimbursable portion of non-dual bad debts has been reduced from 70% to 65%.  For dual eligible bad debts, only 76% – reduced even further for fiscal year 2015 to 65%.

On the Medicaid front, the FRV (Fair Rental Value) valuation will be changing to reflect renovations, bed additions and replacements (that were not adjusted with initial submission and now are included in the rates).  Also, NC’s Medicaid billing system has seen changes as well.  NC Tracks has been in the news for all the issues related to billing, and for good reason.  Beyond those problems, they have made the Medicaid application process a headache with extensive delays.

Many other changes continue to thwart our healthcare system.  Langdon & Company LLP continues to stay updated on the most recent issues.  Our professionals will be happy to help you sort through the details and understand the facts!

Rachel Owens is a Senior Accountant with Langdon & Company LLP.  She specializes in serving healthcare clients, including skilled nursing facilities and behavioral healthcare providers.

Obama Administration Delays Part of Health Law’s Employer Mandate

More Delays to Obama Care Personal MandateThe U.S. Government announced an additional delay of the employer mandate associated with the Affordable Care Act (“ACA”) for certain medium sized employers. ACA is intended to extend health coverage to uninsured Americans, partly by imposing penalties on individuals and businesses not seeking coverage. Most individuals face a tax penalty for not having healthcare coverage in 2014. Continue reading Obama Administration Delays Part of Health Law’s Employer Mandate

Special Rules Regarding Gifts In Kind

Non ProfitThere are special IRS rules pertaining to gifts in kind for the recipient nonprofit and the donor.

The  recipient nonprofit organization can only acknowledge the date of receipt, description of the property, and its standing as a public charity eligible to receive donations from the public.  The assertion of the value of the property rests entirely on the donor.

The donor claiming a charitable deduction must comply with several steps. For any property donated with a purported value > $5,000, certain formalities must be followed in order to support the claiming of the charitable deduction by the donor.  These formalities fall to the donor to ensure full compliance and are summarized in the following steps: Continue reading Special Rules Regarding Gifts In Kind

IRS decreases standard deductions for vehicle

Standard Deductions 2014The IRS is reducing the standard per mile deduction for travel in connection with business, medical care, and moving. The new allowance for business travel is 0.56¢ per mile, which is down from 0.565¢ per mile. The deductions for medical care and moving travel fall from 0.24¢ per mile to 0.235¢ per mile. The standard deduction for driving for charitable purposes is set separately and remains unchanged at 0.14¢ per mile. Continue reading IRS decreases standard deductions for vehicle

SNF’s will pay for Medicare’s Solvency

Medicare SolvencyAccording to an annual report, the Medicare Part A Trust Fund will be depleted by 2026.  This is a two year improvement over last year’s forecast.  The authors of the report credit the improvement to lower projected spending in most service categories, especially skilled nursing facilities.

Langdon & Company LLP provides services to many long term care providers in the southeast.  In addition to cost report preparation and consultation, services include audit, accounting, financial reporting, tax planning and preparation.

Three Ways to Know the Difference Between an Employee and Contractor

Employee vs. ContractorIn order to tell the difference between a part or full time employee and independent contractor, it is important to consider the three main factors listed below. These factors will determine the responsibilities a business has towards a person who may be providing a service to the business, as well as the rights of both parties involved.

Continue reading Three Ways to Know the Difference Between an Employee and Contractor

Overview of Possible FASB Changes in Non-Profit Reporting Rules

Non ProfitThe Financial Accounting Standards Board recently evaluated the way in which non-profit organizations record and report their financial information and is seeking to make changes that would enable charities to provide more accurate financial information to the general public.

To start with, FASB board members have created a draft document that can be used as a formal operating measure to evaluate any organization that is set up to serve the public good.

Continue reading Overview of Possible FASB Changes in Non-Profit Reporting Rules