Sec. 443.8. Natural classification of expense

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(a) The coding system for expenses provides for the use of six digits: four digits to the left of the decimal point and two digits to the right of the decimal point. If two digits to the right of the decimal point are not sufficient for the individual hospital requirements, additional digits to the right of the decimal point may be added to obtain the desired detail.

(b) Digit designations are as follows:

(1) First digit—indicates the primary account classification of the expense account.

6 Daily Hospital and Ambulatory Service Expense

7 Ancillary Service Expense

8 Other

9 Non-Operation Expense

(2) Second through fourth digits (010-999)—indicate the primary subclassification of accounts.

(3) Decimal point—the two required digits (fifth and sixth digits as specified below) identify secondary account classifications.

(c) Natural classifications of expense (the fifth and sixth digits) are specified below:

(1)

.00 Salaries and Wages.

.01 Management and Supervision

.02 Technician and Specialist

.03 Registered Nurses

.04 Licensed Vocational (Practical) Nurses

.05 Aides, Orderlies and Attendants

.06 Physicians

.07 Dentist

.08 Intern, Resident and Fellow

.09 Non-Physician Medical Practitioners

.11 Environment, Hotel and Food Service Employees

.12 Clerical and Other Administrative Employees

.19 Other Employee Classifications

(2)

.20 Employee benefits.

.21 FICA

.22 SUI and FUI

.23 Group Health Insurance

.24 Group Life Insurance

.25 Pension and Retirement

.26 Workers' Compensation Insurance

.27 Union Health and Welfare

.28 Other Payroll Related Employee Benefits

.29 Employee Benefits (Non-Payroll Related)

(3)

.30 Professional Fees.

.31 Medical-Physicians

.32 Medical-Therapists and Other Non-Physicians

.33 Consulting and Management Fees

.34 Legal Fees

.35 Audit Fees

.39 Other Fees

(4)

.40 Medical and Surgical Supplies.

.41 Prostheses

.42 Surgical Supplies—General

.43 Anesthetic Materials

.44 Oxygen and Other Medical Gases

.45 IV Solutions

.46 Pharmaceuticals

.47 Radioactive Materials

.48 Radiology Films

.49 Other Medical Care Materials and Supplies

(5)

.50 Non-Medical and Non-Surgical Supplies.

.51 Food—Meats, Fish and Poultry

.52 Food—Other

.53 Tableware and Kitchen Utensils

.54 Linen and Bedding

.55 Cleaning Supplies

.56 Office and Administrative Supplies

.57 Employee Wearing Apparel

.58 Instruments and Minor Equipment

.59 Other Non-Medical and Non-Surgical Supplies

(6)

.60 Utilities.

.61 Electricity

.62 Fuel

.63 Water

.64 Disposal Service

.65 Telephone/Telegraph

.66 Purchased Steam

.69 Utilities—Other

(7)

.70 Purchased Services.

.71 Medical

.72 Maintenance and Repairs

.73 Medical School Contracts

.74 Laundry and Linen

.75 Data Processing

.76 Management and Contracted Services

.77 Collection Agency

.78 Transcription Services

.79 Other Purchased Services

(8)

.80 Other Direct Expenses.

.81 Insurance

.82 Interest

.83 Licenses and Taxes (other than on Income)

.84 Dues, Books and Subscriptions

.85 Outside Training Sessions (including Travel)

.86 Travel—Other

.87 Postage

.88 Printing and Duplicating

.89 Other Expenses

(9)

.90 Depreciation/Rent.

.91 Depreciation and Amortization—Buildings and Building Improvements

.92 Depreciation—Fixed Equipment

.93 Depreciation—Movable Equipment

.94 Depreciation and Amortization—Land Improvements and Other

.95 Lease/Rentals—Buildings, Improvements and Fixed Equipment

.96 Lease/Rentalsmdash;Movable Equipment

.97 Lease/Rentals—Other

(d) Examples of coding for expenses are as follows:

(1) A registered nurse provides nursing care to a Pediatric Acute patient. The salary expense applicable to the registered nurse would be recorded as follows:

Daily Hospital Service Expense	6
Pediatric Acute	170
Decimal Point	.
Salaries and Wages	0
Registered Nurses or 6170.03	3

(2) A dietician prepares fish for serving to patients in a daily hospital service cost center. The salary expense applicable to the dietician would be recorded as follows:

Other Operating Expense	8
Dietary Services	310
Decimal Point
Salaries and Wages	1
Environmental, Hotel and Food	1
Service Employee or 8310.11

(8) The recording of the food (fish) prepared for the patients would be recorded as follows:

Other Operating Expense	8
Dietary Services	310
Decimal Point
Non-Medical and Non-Surgical Supplies	5
Food—Meats, Fish and Poultry or 8310.51	1