Corporate Compliance

OIG continues rebate audits

Compliance Monitor, May 16, 2007

The OIG is continuing its review of vendor rebates paid to hospitals with the release of two audits conducted in New York and Ohio.

The OIG conducted the audits to determine if either hospital reduced costs reported on their 2003 Medicare cost reports appropriately after receiving vendor rebates. CMS guidance and federal regulations require hospitals to reflect vendor rebates in their cost reports, and adjust their costs accordingly.

After auditing Southside Hospital in Bay Shore, NY and Grandview Hospital in Dayton, OH, the OIG found that both hospitals did not accurately reduce costs, as reported on their 2003 cost reports, to reflect all rebates they received from vendors.

Click here to read the OIG's audit of Southside Hospital.
Click here to read the OIG's audit of Grandview Hospital.

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