Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medical Supply Ancillary Costs Claimed by 31 Skilled Nursing Facilities Owned by Horizon West, Inc.," (A-09-98-00060)

August 31, 1998

Complete Text of Report is available in PDF format (443 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

This final audit report points out that Horizon West, Inc. misclassified certain costs as ancillary medical supplies. The costs should have been classified and claimed as other types of costs, such as routine, dietary, and administrative and general costs. As a result of this misclassification, Horizon was overpaid Medicare funds totating $1.1 million for Fiscal Year (FY) 1991. Horizon concurred with out finding and has voluntarily repaid the Federal Government $1.7 million. This amount includes the $1.1 million we identified as an overpayment plus an additional $0.7 million to cover our estimate of overpayments made for FYs 1992 through 1995.