How do hospitals that have demonstrated meaningful use record the payments?
Answer: In general, I’ve seen two options:
- Recorded as other income in the period in which the payments were received.
- Though not common, recorded as deferred revenue and amortizing the life of the recorded asset against the cost of the electronic health record.
In addition, this guidance may provide more in-depth information.
This question was answered by: David A. Williams, FHFMA, CPA, partner, Horne LLP, and is a member of HFMA’s Mississippi Chapter.
The information provided through the Forum’s Ask the Expert service does not constitute legal advice, even when the advice is provided by lawyers. You need to obtain your own legal counsel for legal advice, and consider the laws and regulations that govern your state. The content and opinions expressed are those of the Forum experts, and not that of their employers or of HFMA. HFMA does not endorse the material or warrant or guarantee its accuracy. The responses are based only on the specific facts or circumstances provided. Forum experts cannot be held liable for outcomes related to any information provided.
Pose another question to our CFO Forum experts.
