EXECUTIVE SUMMARY:
This final audit report points out that Fresenius Medical Care (FMC) allocated approximately $16.1 in unallowable costs to 320 facilities claiming reimbursable bad debts in Calendar Year 1996. As a result, reimbursable bad debts claimed by these facilities were overstated by $1.5 million. In addition to a financial adjustment for the $1.5 million, we recommended that FMC establish additional procedures to exclude the unallowable costs identified by our review from future cost reports. The FMC generally concurred with our findings and recommendations.