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.
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)
†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.
*Agency responses received after June 2013 are posted verbatim.