Get started on a cost-report audit
Healthcare Auditing Weekly, April 13, 2004
Cost-report fraud is a top government enforcement issue. The many high-publicity financial-fraud cases over the past few years has highlighted cost-report fraud as a top issue for healthcare organizations as well. Keep an eye on your facility's cost reports and review the following objectives of a cost-reporting audit:
- The audit should appraise the adequacy of source documents.
- The audit should evaluate a facility's procedures for completing the cost report.
- The audit should verify that costs are treated correctly and consistently, and reported as required by the Tax Equity and Fiscal Responsibility Act and the prospective payment system.
This excerpt was adapted from the manual, "Hospital Auditing and Monitoring: Sample programs for key risk areas." This is a step-by-step, practical manual that offers sample audit programs for the most troublesome areas a hospital must audit. The binder and CD/ROM are filled with actual audit programs used by auditors and compliance officers in the field.
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