How does a hospital request a change of Fiscal Year End with the MAC?

In order for a Provider to change their Fiscal Year End for cost reporting purposes, the Provider must take the following steps with their Medicare Audit Contractor (MAC) in accordance with 42 CFR §413.24(f)(3) and PRM Part I §2414.3.

  • Provider must first contact, in writing, their respective MAC to request a change in reporting period. The providers written request must be received by the contractor 120 days or more before the close of the reporting period which the change is proposed. 
  • The written request must include the Provider name, Provider number, Current fiscal year end (FYE), requested FYE, and the reason/justification for making the change of FYE. 
  • The MAC will determine that good cause for the change exists, such as a change of ownership. Good cause would not be found to exist if the effect is to change the initial date that a hospital would be affected by the rate of increase ceiling, or be paid under the prospective payment systems.
  • The MAC will then notify CMS of the authorized change or denial at least 30 days before the close of the requested reporting period. 
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