Review of General and Administrative Costs Included in the Fiscal Year 1991 Medicare Cost Report by Albert Einstein Medical Center

EXECUTIVE SUMMARY:

This final audit report presents the results of our review of general and administrative (G&A) costs included in the Fiscal Year (FY) 1991 Medicare cost report submitted by the Albert Einstein Medical Center, Philadelphia, Pennsylvania. The audit was part of a nationwide review performed at the request of the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce, House of Representatives. The review disclosed $381,048 in costs improperly allocated to Medicare. These costs were unallowable primarily because the costs were not related to patient care. We recommended that the Center remove these costs from its FY 1991 cost report and implement controls to prevent the inclusion of these costs in the future.