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Statement No. 13: Timing differences pertaining to third-party payments. Healthcare Financial Management Association, Principles and Practices Board.

As this statement describes, institutional healthcare providers have recorded timing differences and continue to be confronted with circumstances warranting their recording. Medicare arrangements for paying for capital related cost are the most frequent basis of recording or changing previously recorded timing differences but other bases for recording or changing previously recorded timing differences are described in this statement. As this statement was being prepared for publication, another significant change in Medicare arrangements for paying for capital-related cost was under consideration. This statement is intended to describe the issue of timing differences generally and not to focus only on changes called for by a single legislative or regulatory action. Furthermore, the disposition of the currently proposed change is uncertain. Accordingly, the examples included in the appendices of this statement are the same as were included in the exposure draft of this statement released in 1990. HFMA has indicated its intent to prepare examples of the recording of changes in timing differences called for by legislation or regulations when the terms are sufficiently certain to warrant action. Those examples will be based on the conclusions included in this statement.