General Purpose

The general purpose behind an A-6 reclass is to take expenses from either a single or multiple departments, accounts, and cost centers on worksheet A and reallocate those expenses to other cost centers within the cost report.

Reasons for Reclassifying Expenses

1. To correct mapping errors on W/S A
2. To split/allocate direct management costs between departments (e.g., Radiology Admin)
3. To estimate costs for departments that don’t separately exist (e.g., Nursery/L&D, Cafeteria)
4. To move directly assigned admin costs to proper general service lines for allocation (e.g., total property tax expense reported in A&G)
5. To move costs to “departments” that only exist on the Medicare cost report (e.g., Med Supplies Charged to Patients)
6. To move costs between “other” and “salary” categories

Additional information

Hours need a corresponding reclassification for wage index (i.e., Worksheet S-3, Part II) when related expenses are reclassified on Worksheet A-6. Luckily, Absolute automatically handles this step for you. To learn more about how Absolute calculates those values, please check out the following article:

How does Absolute℠ calculate the hours reclassed for wage index?