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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Little Company of Mary's Skilled Nursing Facilities Billings and Costs for Ancillary Medical Supplies for the Period July 1, 1992 through June 30, 1994," (A-09-96-00083)

August 19, 1997

Complete Text of Report is available in PDF format (736 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This report discloses that Little Company of Mary Health Services billed Medicare for medical supplies and pharmacy supplies that were not in compliance with Medicare's rules and misclassified significant costs on the Medicare cost reports of its two hospital-based skilled nursing facilities for fiscal years ended June 30, 1993 and June 30, 1994.

We did not quantify the financial impact of the unallowable billings or misclassified costs as our review was limited to determining what types of supplies and services were billed as ancillary or claimed as ancillary cots and were unallowable as such.

We recommended that Blue Cross ensure that Little Company of Mary Health Services makes certain procedural changes and refiles appropriate cost reports, if necessary.