
INSIGHTS FOR HEALTH CARE	MARCH 1, 2016

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Eide Bailly is a top 25 CPA firm in the nation, serving nearly 1,700 Health Care clients across the United States.

HCNN, Health Care News Network, is published on an as-needed basis to keep our clients, prospects and business friends informed on current news.

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FASB Issues Accounting Standards Update (ASU) 2016-02, Leases

After several years of work, including collaboration with the International Accounting Standards Board (IASB), the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) No. 2016-02, Leases. The issuance and resulting application of this guidance will result in major changes in the financial reporting for leasing arrangements, particularly for lessees, as significantly more leasing arrangements will be reported on the balances sheets of lessees.

To read the full summary, click here.

Accounting Standards Update - Accounting for Financial Instruments

Recently, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01

, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The objective of this update is to enhance the reporting model for financial instruments to provide more decision-useful information to financial statement users and to help converge Generally Accepted Accounting Principles (GAAP) with international standards. The ASU will affect all entities (including nonprofit entities) that hold financial assets or owe financial liabilities.

Read the full article for an overview of the main provisions and their implications for health care organizations.

FASB Continues Redeliberation of Proposed Changes to Nonprofit Financial Reporting

On February 3, 2016, the Financial Accounting Standards Board, (FASB) continued its consideration of feedback received from stakeholders on the April 2015 proposed FASB Accounting Standards Update

, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities (ASU). FASB redeliberations focused on three specific issues:

Reporting of investment return and disclosure of investment expenses
Reporting of expenses by nature and an analysis of expenses by function and nature
Providing enhanced disclosure about cost allocations and improved guidance on management and general activities

Read the article for full details.

Medicare Overpayment Rule

On February 11, 2016, Centers for Medicare and Medicaid Services issued a final rule implementing Section 6402(a) of the Payment Protection and Affordable Care Act. This ruling implements the overpayment reporting and repayment provisions effective March 14, 2016.

The final rule requires Medicare Part A and Part B providers and suppliers to report and return any overpayments they identify within six years of receipt. Once identified, overpayments must be reported and returned within 60 days after the date on which the overpayment was identified, or the date any corresponding cost report is due. The 60-day period begins "when an employee using reasonable diligence has or should have determined it was received and quantified the amount." We encourage providers to consult with legal counsel when addressing a potential overpayment issue.

Failure to report and return overpayments may result in liability under the False Claims Act, civil monetary penalties and exclusion from federal health programs. Refunds are to be made to the local Medicare contractor or state agency as applicable. For additional information, please contact your local Eide Bailly professional.

Medicare Cost Report Blog

Know more about your Medicare cost report by knowing your facility.

Click here to read tip #2 on Worksheet S-2.

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