Starting the process of completing the Hospital Annual Report (HAR) can be a daunting task, especially to those preparers who have never worked on one before.  With 625 accounts and 58 sections spanning 31 pages, knowing what you need and where to find data sources is vital for successful completion of the HAR. 

Knowing how to start the HAR can be challenging.

Getting Started

Volume 1, Issue 1

March 30, 2006

Divide and Conquer

As mentioned earlier, filling out the HAR can be a daunting and frustrating task.  Two techniques that can be used to greatly reduce the time and frustration in completing this report are delegation and “divide and conquer”. 

Review the HAR and its different sections to see if there are areas of it that could possibly be delegated to a different person or even department.  For instance, one could possibly send the staffing sections (sections 24-26) to the Payroll department manager asking that they fill in the appropriate information.  Or one could send the emergency services sections to the ER for completion.  Doing this frees the preparer to complete those sections only they can do, and allows for an expedited process.

 

Recruiting others to help can make the workload easier

Before starting the HAR, there are several documents the preparer will want to have at their disposal.  First and foremost, have the prior year’s HAR and any documentation available.  It would be worthwhile to take some time to thoroughly review all notes and audit letters to avoid time-consuming re-work.  What documents were needed last year? What audit issue were noted and how were they corrected?  What areas were the most difficult?  Were there certain departments it took longer to procure information from?  By asking these kinds of questions and reviewing how things were done last time, the process of completing the HAR and passing the audit should be easier and less time consuming.

The audited financial statement and Medicare Cost Report are two documents that will need to be sent to MHA before or with the institution’s HAR.  Other documents that will be needed are internal financial statements (e.g. trial balance, income statement), PS & R reports, and payroll records. If there were any other statements or reconciliation schedules used in the prior year’s HAR, it would be advisable to have these available as well.   Once all the required documents have been obtained and the prior HAR reviewed, the next step in the process can begin.

Reports and Documents

Required Documents

· Audited Financial Statement

· Medicare Cost Report

Suggested Documents

· Internal Financial Statements

· PS & R Reports

· Payroll Records
Text Box: Required and Suggested Documents

Hospital Annual Report Newsletter

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Questions or comments? E-mail us at jpeters@mnhosptials.org or call (651) 659-1422.

 

To contact the Minnesota Department of Health with questions or comments, e-mail amy.camp@health.state.mn.us or call (651) 201-3575.

“When having other departments complete portions of the HAR, make sure to review the information and documentation for reasonableness and comparability to prior year’s information.” 

One caveat, however, is that the preparer is still responsible for the information reported.  When having other departments complete portions of the HAR, make sure to review the information and documentation for reasonableness and comparability to prior year’s information.  If it is not, review it with the department manager.

The second technique is that of divide and conquer.  There are still a number of sections that need to be completed by you, even if others are working on sections of it.  The HAR, despite its large number of accounts and pages, is still divided into smaller, somewhat disjoint sections.  Schedule time to work on these different areas of the report over a period of time.  By doing this, the completion process will be less frustrating and stressful, and more accurate as well.  Waiting until two weeks before the deadline will result in less accurate information, a longer audit review, stress and frustration.  It pays to schedule times to work on each individual section, and to spread the workload over the course of a month or longer.