- 25 - identification of specific medical supplies used while performing a particular hospital procedure. Costs classified as Payroll, Fees, and Cost of Sales--Supplies, Repairs, Leases and Rental, must be recorded in the cost centers responsible for incurring and controlling such costs. Supplies are charged to operations during the period in which they are consumed or expended. Petitioners use a specific identification requisition system to identify and allocate appropriate supply costs to the consuming cost center and to identify the period in which the supplies were consumed. Fixed costs (such as depreciation, interest, rent, taxes, and insurance), employee benefits, and certain overhead costs (such as maintenance and repairs) are not departmentalized under petitioners' accounting system but are recorded in specified cost centers. Thus, under petitioners' accounting system, petitioners track patient revenue, operating expenses, and gross margins for each hospital. They also track financial operating indicators on such items as revenue, labor costs, and supply costs, among others. The hospitals also maintain separate accounts for such categories as Operating Room, Central Supply, Laboratory, Pharmacy, Dietary, Plant Operations & Maintenance, Linen, and Housekeeping. Petitioners' Chart of Accounts Petitioners' hospitals record their revenue and expenses pursuant to a uniform chart of accounts promulgated by HCA'sPage: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011