The SEC said eligible professionals and hospitals who receive incentive payments through meaningful use should use the “gain contingency” accounting model for recognizing the income. In response to the guidance, Nashville, Tenn.-based HCA changed its financial expectations — not the amount, but the calendar year when incentive payment income could be recognized.
HCA had been using an accounting model based on a consensus position of the American Institute of Certified Public Accountants’ healthcare panel that recognized incentive payment income sooner than is now allowed under the SEC. In its Nov. 1 third quarter earnings call, HCA estimated an income of $400 million-$430 million from meaningful use incentive payments in calendar year 2011. The projection is now at $190 million-$220 million for 2011. The remaining estimated $210 million would be recognized as income in 2012.
Related Articles on Meaningful Use Incentive Payments:
Survey: 26% of CIOs Say Their Organizations Have Qualified for Stimulus Funding
CMS to Develop Appeals Process for Medicare EHR Incentive Program
CMS’ Electronic Health Record Incentive Payments Topped $850M by End of September
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.