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 Care Management's Skilled Nursing Facility Billings and Costs for Ancillary Medical Supplies for the Period January 1, 1993 through December 31, 1994," (A-09-96-00079)

January 23, 1997

Complete Text of Report is available in PDF format (299 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This report discloses that Health Care Management's (HCM) billings to Medicare for ancillary medical supplies used in its three skilled nursing facilities (SNFs) were generally in compliance with Medicare's rules, but that significant costs were misclassified as ancillary on the medicare cost reports for the 2-year period ended December 31, 1994. The costs should have been classified as routine.

We did not quantify the financial impact of misclassified costs as our review was limited to determining what types of items and services that were claimed as ancillary were unallowable as such.

We recommended that Mutual of Omaha ensure that HCM submits revised cost reports for its three SNFs and that the revised cost reports reclassify all costs for routine items and services that were previously claimed an ancillary medical supplies.