Audit of Austinwoods Nursing Center's Medicaid Cost Report For the Calendar Year (CY) Ended December

EXECUTIVE SUMMARY BACKGROUND Austinwoods is a nursing facility, located in Austintown, Ohio, that provides services to resident patients who are Medicaid eligible. In Ohio, the Medicaid program is administered by the Ohio Department of Human Services (the State). The Ohio Administrative Code describes the Medicaid costs that are allowable under the Ohio Medicaid State Plan (State plan) and requires that providers report these costs to the State on annual cost reports. OBJECTIVES The audit objective was to determine whether costs reported on Austinwoods’ Calendar Year (CY) 2001 cost report, totaling $9,667,986, were allowable, allocable, and reasonable in accordance with applicable Federal and State requirements. FINDINGS Of the $9,667,986 in total costs claimed on Austinwoods’ CY 2001 cost report, $39,104 were unallowable. The $39,104 was comprised of $31,563 in indirect costs related to services provided to non-resident patients in the physical therapy unit and $7,541 in non-patient care costs, such as country club dues of the owner and the expenses of the owners’ privately owned vehicles. The State plan requires that costs claimed by nursing facilities must be related to patient care provided to resident patients. We attribute the $31,563 of unallowable indirect costs to Austinwoods’ lack of a methodology to identify their indirect costs and allocate those costs to the physical therapy unit and, subsequently, between ...