Report 2006-035 Recommendation 2 Responses

Report 2006-035: Department of Health Services: It Has Not Yet Fully Implemented Legislation Intended to Improve the Quality of Care in Skilled Nursing Facilities (Release Date: February 2007)

Recommendation #2 To: Health Services, Department of

To reduce the risk of using flawed data to calculate reimbursement rates, Health Services should conduct all the audits of skilled nursing facilities called for in the Reimbursement Act.

Annual Follow-Up Agency Response From January 2010

The Department has substantially complied with the audit requirements in the Reimbursement Act- Beginning in the 2007/2008 production year, the Department has made every effort to audit 100 percent of the Medi-Cal level B facilities on an annual basis, including a field audit once every three years- Facilities that undergo a change of ownership (CHOW) are not audited until the new owners file a qualifying cost report. The State Plan requires that when a CHOW occurs and the new owner does not file a cost report within six months, the facility receives the rate of the prior owner. (2009-041, p. 65)

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

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All Recommendations in 2006-035

Agency responses received after June 2013 are posted verbatim.