Review of Home Office General and Administrative Costs Claimed by ABC Home Health Services, Inc.

EXECUTIVE SUMMARY:

This final audit report points out that ABC claimed unallowable general and administrative (G&A) costs of $14.3 million out of $52.3 million reported in calendar year 1992. The costs were generally unallowable because they were not reasonable, were not necessary for the maintenance of the health care entity, or did not relate to patient care. We recommended that the fiscal intermediary for ABC remove $14.3 million from ABC's 1992 cost reports. The Health Care Financing Administration generally agreed with our findings and conclusions.