Review of Medicaid Payments by Nebraska Department of Social Services to Rivendell of Nebraska

This final audit report points out that the Nebraska Department of Social Services (DSS) made overpayments totaling $2,163,243 (Federal share $1,319,490) for services provided to Medicaid recipients at Rivendell of Nebraska, a psychiatric hospital for children and adolescents. The overpayments occurred because DSS based their payments on Rivendell's unaudited cost reports which contained costs not allowed by the Health Care Financing Administration regulations. In addition to financial adjustments, we recommended that DSS ensure that an intermediary is assigned to audit Rivendell's future cost reports. The DSS agreed with our findings.