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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Rate Increases for State-Owned Intermediate Care Facilities for the Mentally Retarded - Indiana," (A-05-93-00060)

August 5, 1994

Complete Text of Report is available in PDF format (2.15 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report recommends that the State of Indiana make a financial adjustment of $2.5 million (Federal share) for computation errors made in 1991 when setting reimbursement rates for State-owned Intermediate Care Facilities for the Mentally Retarded (ICF/MRs). We also recommend that the State amend State Plan provisions which permit special rate increases to accommodate changes in Federal/State laws and regulations. As currently written the provisions are too vague to be consistently applied. State agency and regional officials of the Health Care Financing Administration concurred with our findings and recommendations.