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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Office of Inspector General's Partnership Plan: Montana Legislative Auditor's Office Report on Medicaid Expenditures for Durable Medical Equipment," (A-06-96-00042)

May 20, 1996

Complete Text of Report is available in PDF format (984 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This review of the Medicaid Expenditures for Durable Medical Equipment in Montana for the period from July 1, 1993 through June 30, 1995 was conducted by the Montana Legislative Auditor (MLA) as part of our partnership efforts with State Auditors to expand coverage of the Medicaid program. We provided the MLA with copies of the Office of Inspector General audit reports on this subject and technical assistance during the course of the audit. We also performed a desk review of the MLA's audit report to satisfy ourselves that the report can be relied upon and used by the Health Care Financing Administration (HCFA) in meeting its program oversight responsibilities.

The MLA performed a limited scope review of the Montana Medicaid expenditures for medical equipment and supplies. The Medicaid program is administered by the Department of Public Health and Human Services (Department). The objectives of the review were to (1) determine whether the Department pays more than necessary for medical equipment and supplies and (2) identify procedures to achieve cost savings for the Department in the acquisition of medical equipment and supplies.

The MLA's report on the purchasing and payment procedures discussed areas of potential cost savings and recommended that:

We plan to share this report with other States to encourage their participation in our partnership efforts.