Without routine analysis, the Department cannot evaluate the reasonableness of expenses or look for potential fraud, waste, and abuse. The Department will have to take steps to decrease the average cost per person during fiscal years 2000 and 2001. The Department should routinely analyze HCS cost reports to evaluate the reasonableness of costs and to look for potential fraud, waste, and abuse. Additionally, the Department should conduct desk audits of all HCS cost reports and a sufficient number of on-site financial audits in accordance with generally accepted auditing standards. The Department should conduct a sufficient number of on-site financial audits in accordance with generally accepted auditing standards.
Many controls are in place to administer provider contracts and to regulate providers.
However, the Department can improve central office Medicaid operations and administration, particularly its business processes, policies and procedures, and information systems. Contact the SAO about this report. Download the acrobat version of this report.