Beverly Manor of Margate, a Skilled Nursing Facility, Billings for Ancillary Medical Supplies for the Period January 1, 1993 through December 31, 1994

This report discloses that Beverly Manor of Margate (Beverly Manor) generally complied with Medicare's rules relating to the treatment of medical supplies as ancillary or routine, both as Medicare billings and as costs claimed on its Medicare cost reports for calendar years ended December 31, 1993 and December 31, 1994. Beverly Manor is one of over 600 skilled nursing facilities in a national chain.

However, from a review of the current master list used to classify each medical supply item as routine or ancillary, we noted 36 routine medical supply items that were classified as ancillary. According to Beverly Manor's home office, Beverly Health and Rehabilitation Services, Inc. (BH&RS), this master list is used by all facilities in the chain.

We recommended that Blue Cross ensure that BH&RS reviews its master list to identify and correct all of its classifications of ancillary medical supplies that should be treated as routine.