MN ADC 9549.0041

General Reporting Requirements

As a condition for payment under a medical assistance program such as Medicaid, a nursing home facility must submit an annual cost report to the Department of Human Services by the end of each year.  The nursing facility must be audited annually by a certified accountant.  A complete cost report must include the following:

1. General information about the nursing facility, including statistical data;
2. Historical data;
3. Complete statement of fees and charges, including rates charged to privately paying patients;
4. A copy of the nursing facility’s audited financial statements, including balance sheet and income statement;
5. A statement of ownership of the nursing facility, including the contact information of each owner; If the facility is owned by a privately held or closely held corporation, all owners with at least a 5% ownership interest must be reported.  If a public corporation has an at least 15% interest in the facility, all owners with at least a 10% ownership interest must be reported;
6.  Copies of the lease or purchase agreement if not already submitted;
7. A list of the outstanding debt owed by the facility, including the terms of the debt, the lender, amount owed, and interest rate.
8. Explanation of adjustment of historical costs, if applicable;
9. Statement of property tax;

The nursing facility must maintain its statistical and accounting records for at least five years after the cost report is submitted to the Department.  The Department may require other information from the nursing facility, including access to the audit paperwork, audited financial statements, lease or purchase agreements of equipment, and federal and state income tax returns for the facility and owners.  Nursing facilities may file amended annual cost reports if errors or omissions are discovered that would lead to a payment adjustment of at least 5% per resident per day or $2000.  There is additional reporting that is required for nursing facilities that are attached to hospitals.  If a nursing facility fails to comply with the required reporting requirements, the Department may decrease its payment rate to 80% of the total.  However, before any such decrease takes place, the Department must make a written request for additional information and wait 21 days.  If a nursing facility knowingly supplies false information in its annual cost report, the Department can immediately adjust the facility’s payment rate to recover the amount it overpaid, terminate its contract with the nursing facility, take legal action against the nursing facility under state or federal law, or a combination of any of these actions.