On November 10, 2011, HHSC presented proposed amendments to cost reporting and auditing rules to the Medical Care Advisory Committee (“MCAC”). The proposed rules impact Title 1 of the Texas Administrative Code at Part 15, Chapter 355, Subchapter A, §§355.101 and 355.107 and apply to of Intermediate Care Facilities for Persons with Mental Retardation, Home and Community-based Services, Service Coordination/Targeted Case Management, Rehabilitative Services, School Health and Related Services, and Texas Home Living.
The proposed rules:
- Amend the definition of “line item” – With the recent rollout of HHSC’s web-based State of Texas Automated Information Reporting System (“STAIRS”), the meaning of the term has become somewhat obsolete. A web-based system does not rely on “lines” as does a paper-based system or HHSC’s more recent database system. HHSC’s clarification covers the use of the term by defining “line item” as, “A specific informational, statistical, revenue or expense data element in a cost report.”
- Remove the term “auditor” – Cost report desk reviews are generally completed by HHSC Office of Inspector General audit staff. However, HHSC intends to modify its cost report audit process to focus more audit resources on high-risk cost reports. Consequently, both audit and non-audit HHSC staff would be making exclusions or adjustments to a cost report or finalizing those adjustments. Therefore, HHSC proposes removing the word “auditor” from §355.107(a).
The MCAC recommended approval of the rules for publication. Next, HHSC will present the proposed rules to the DADS Agency Council on November 30, 2011. The proposed rules are expected to be published in February 2012, with publication of the adopted rule May 2012 and an effective date of approximately June 2012.
