U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Skip to Content

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Health Personnel Incorporated, McKees Rocks, Pennsylvania," (A-03-00-00020)

February 14, 2001

Complete Text of Report is available in PDF format (585 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Our audit showed that $7,809 or about 1 percent of the total $541,190 claimed by HPI on its FY 1998 Medicare cost report were claimed in violation of Medicare requirements. The following expenditures were unallowable:

- on call pay for Chief Financial Officer (CFO) - $5,520;
- flowers - $218;
- dry cleaning - $360;
- personal vehicle repairs - $288;
- meals - $826;
- duplicate expense account reimbursement - $43;
- personal homeowners insurance - $202;
- second telephone line at personal residence - $233; and
- excess salary payment - $119.

We recommend that HPI strengthen its procedures to ensure that costs in violation of Medicare reimbursement requirements are excluded from the Medicare cost report prior to submission. We will provide the fiscal intermediary (FI) with detail of the identified $7,809 in unallowable costs for appropriate adjustment to the HPI FY 1998 Medicare cost report and collection of the resulting overpayment.