Review of General and Administrative, Fringe Benefits, and Other Costs Reported by Saint Joseph Hospital, Denver, Colorado

EXECUTIVE SUMMARY:

This final report points out that costs totaling $564,488 were not allowable under the Medicare cost reimbursement principles since these costs were not related to patient care. These unallowable costs consisted of general and administrative costs of $551,647 incurred for planning and marketing, air flights to rural sites, food, gifts, entertainment, alcoholic beverages, outside printing costs, and dues and donations; depreciation costs of $909 for paintings, pictures, and similar assets; and fringe benefits costs of $11,932 incurred for entertainment and alcoholic beverages. We recommended a financial adjustment for the unallowable costs.

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