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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of General and Administrative Costs Included in the Fiscal Year 1991 Medicare Cost Report by the Medical College of Pennsylvania," (A-03-92-00015)

January 19, 1993


Complete Text of Report is available in PDF format (1.77 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final audit report presents the results of our review of general and administrative (G&A) costs included in the Fiscal Year (FY) 1991 Medicare cost report submitted by the Medical College of Pennsylvania (MCP), Philadelphia, Pennsylvania. The audit was part of a nationwide review performed at the request of the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce, House of Representatives. The review disclosed $207,933 in costs improperly allocated to Medicare. These costs were unallowable primarily because the costs were not related to patient care. We recommended that MCP remove these costs from its FY 1991 cost report and implement controls to prevent the inclusion of these costs in the future.