tci Medicare Compliance & Reimbursement - 2004 Issue 12

Long-Term Care: Beware Of Blurring Lines Between Related Companies

Related party rules can make Medicaid audits tricky.A recent HHS Office of Inspector General report illustrates the pitfalls of Medicaid cost reporting -- and the dangers of mishandling related party rules. A Jan. 21 audit of Albuquerque Manor (A-06-03-00015), nabbed the facility for apparently overstating its 2000 Medicaid cost report by $518,492. Manor's laundry list included claiming costs not related to patient care, such as salaries for staff involved in patient recruitment, and unallowable retail gift certificates given to employees for showing up and "working well" during the week the facility was surveyed by the New...

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