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HRD-82-42 1 (1982-02-22)

handle is hein.gao/gaobabcys0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 7 6? '7 WASHINGTON, D.C. 20548 FEBRUARY 22,1982 B-206428 RESTRICTED ._Not to be released oetside the General A4c6Onting Office except on the bas3 of Speciftc approval y jhe_ 0tf'c Of Congressonal Lfoapoa The Honorable L. H. Fountain Chairman, Subcommittee on Intergovernmental Relations and Human Resources Committee on Government Operations House of Representatives Dear Mr. Chairman: Subject: Information on Selected Medicare Independent Dialysis Facility Audits (HRD-82-42) This is in response to the Subcommittee's February 3, 1982, request for information on the results of our analysis of selected Health Care Financing Administration (HCFA) audits of independent dialysis facilities participating in Medicare's End Stage Renal Disease program. We were asked to provide data on (1) the adjust- ments beyond those made by HCFA that we believed should be made to the facility cost reports and (2) the related organization trans- action costs 1/ included in these reports. As part of our ongoing review of reimbursement under the End Stage Renal Disease program, we made a limited review of 13 of the 38 independent facility audits performed by Medicare fiscal inter- mediaries, under contract with HCFA, which also administer payments to dialysis facilities. 1/The costs of services, facilities, and supplies purchased from organizations related to the purchasing organizations by common ownership or control. Medicare cost reimbursement principles permit reimbursement to such providers at the lower of (i) the costs incurred by the related organization in furnishing the goods or services or (2) the costs at which the goods or services could be obtained elsewhere. (See 42 C.F.R. 405.427.) (106226) II 1111111 11liii 117677 62'o HUMAN RESOURCES DIVISION RELEASED

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