Review of Quality Improvement Organization in Iowa

The Senate Finance Committee requested that OIG assess the fiscal integrity of the Medicare Quality Improvement Organizations with respect to six specified fiscal integrity areas.

Of the $10.3 million of costs reviewed, $9.6 million appeared reasonable for Federal reimbursement.  Of the remaining costs, the Iowa Foundation for Medical Care (IFMC) incurred $208,974 of costs that were unallowable and $530,822 of costs that may not have complied with Federal requirements.

OIG recommended that IFMC (1) refund $179,358, which includes $145,091 of direct costs and $34,267 of associated indirect costs, for unallowable food and equipment; (2) reduce the indirect cost pool by $29,61 for chartered air travel costs incurred by board members; and (3) work with the CMS contracting officer to determine what portion of the $530,822 incurred for board member fees, board member travel costs, and executive compensation during our audit period should be excluded from the indirect cost pool for purposes of determining final rates.  IFMC disagreed with the recommendations.