§ 521.1. Purpose and scope.
The instructions set forth in this chapter are for use in the preparation of Form AG12 (Financial Report to the Commonwealth of Pennsylvania). The purpose of the report is the determination of the reasonable cost of inpatient hospital services, provided during the reporting period, as the basis for reimbursement under the Medical Assistance Program. Regulations formulating guidelines and procedures to be used in the determination of reasonable cost are set forth in ‘‘Principles of Reimbursement for Provider Costs.’’ The principles of reimbursement and the related policies establishing the guidelines and procedures are contained in the publication of the U.S. Department of Health, Education, and Welfare designated ‘‘Provider Reimbursement Manual,’’ HIM-15. This manual also contains instructional material designed to assist providers in giving effect to the cost principles. For any situation that is not covered by the guidelines contained in the manual, generally accepted accounting principles will apply.
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