Review of Houston Companies Medicaid Cost Reports for Calendar Years 2003, 2004, and 2005

Houston Companies, Inc., a private for-profit organization, did not accurately report approximately $194,000 in nursing and group homes and home office costs on its Medicaid cost reports for calendar years 2003, 2004, and 2005. We also set aside for CMS adjudication approximately $269,000 in potentially unallowable related-party transaction costs.