McKnight's August 24, 2022
Kimberly Marselas

A federal watchdog plans to audit nursing homes’ use of related parties, and the results could ultimately lead to even more oversight for the already highly regulated sector.

The Health and Human Services Office of Inspector General will determine whether the use of related parties is being accurately reported, and if dependence on affiliates might have increased overhead costs.

The agency last week announced its plan to add the Medicare payment audit to its 2023 work plan. It is an apparent extension of the ongoing federal effort to improve transparency into nursing home ownership and the skilled nursing sector’s corporate structures.

Nursing homes can include the cost of “services, facilities, and supplies” provided by an organization related by common...

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