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COST REPORT UPDATE: “Non-routine medical supplies (NRS), are you recording them correctly?”


Line 12, Worksheet A of the Medicare Home Health Agency Cost Report calls for the reporting of medical supplies.  Knowing what is and what is not considered under these costs will help you in how you record them in your general ledger and ultimately report them on the Cost Report. 

The Medical Supplies to be reported on line 12, as stated by CMS, are “those supplies that are not routinely furnished in conjunction with patient care visits and which are directly identifiable services to an individual patient.” (CMS Pub. 15-2 §1703) 

Generally, these non-routine medical supplies are specified in the patient’s plan of treatment and furnished under the specific direction of the patient’s physician.  They are sometimes referred to as billable medical supplies as charged separately, from the visit charge, to the patient or payer.

Minor medical and surgical supplies (e.g., cotton balls, alcohol prep) that are frequently furnished to patients in small quantities should be tracked separately, and are to be reported in the administrative and general (A&G) cost center.

It is recommended that a Routine and separate Non-routine Medical Supplyaccount be created to accurately track these two very different costs.

If non-routine medical supplies are used during a home health episode, it is important to ensure that they are included on the final claim submitted.  The billings feed directly to the Provider Statistical & Reimbursement (PS&R) report, which are used to compile the yearly Medicare Cost Report (MCR). If not reported on the claim, the cost report will not accurately reflect the cost of non-routine medical supplies furnished to Medicare patients.