We recently completed a review of CAH’s methods for cost assignment, reclassification and allocation. This review was based upon a 2006 Medicare/Medicaid Cost Report, but was intended to help them improve their reporting for the FYE 2007.
Their 2006 report was prepared to a well respected accounting firm that specializes in small and mid-size facilities. Over the course of our review, we found several material opportunities in each of the areas within the scope of the project. We project an increase in reimbursement of approximately $140,000 for the FYE 2007 Medicare/Medicaid Cost Report .
Our client has also ask us to go back and collect the reimbursement that was lost due to these errors in prior years through the cost report reopening process. Our fee for the initial review, including expenses, was less than $7,500, so the return-on-investment for our client on this project will be outstanding.
