Results of Audit of Medical Therapy Services, Inc. Cost Reports

EXECUTIVE SUMMARY:

This final report summarizes the result of our review of costs claimed by Medical Therapy Services, Inc., a chain of outpatient therapy clinics in Georgia. Our review of the chains' 1995 Medicare cost reports showed that the home office and the four clinics claimed $761,849 of costs that did not meet Medicare reimbursement guidelines. The unallowable costs included estimated home office costs, unallowable related party transaction costs, and unreasonable costs. We recommended the Health Care Financing Administration (HCFA) instruct the appropriate intermediary to adjust the cost reports for the $761,849. The HCFA concurred with our findings and recommendation.