title: Step up to the step-down method.
abstract: CFOs can use the Medicare cost report step-down method to allocate costs by service line and then develop an income matrix. With an income matrix and tiered expenses by service areas, CFOs can direct corrective action to improve financial performance. The cost data derived from the step-down method can also be used to set prices and to negotiate third-party contracts.
authors.affiliation: Healthcare Management Solutions LLC, Vails Gate, NY, USA. mmuise@hmsconsultants.com
authors.forename: Marianne L
authors.initials: ML
authors.lastname: Muise
authors.forename: Bonnie A
authors.initials: BA
authors.lastname: Amoia
mesh_terms: D000066:Accounting / Q000379:methods*; D003361:Cost Allocation / Q000379:methods; D005377:Financial Management, Hospital / Q000458:organization & administration*; D006278:Medicare; D014481:United States