Cost Allocations for Surveys of Home Health Agencies (HHAs)
• Office of Management and Budget (OMB) Circular A-87: OMB Circular A-87 articulates basic principles for determining the
allowability of costs in the administration of certain federal programs. One principle is that costs should be allocated
between cost centers in accordance with relative benefits received.
• Benefiting Programs: Medicare, Medicaid, and States all benefit when surveys are conducted to assure compliance with basic
public expectations for quality of care and safety through the federal survey process.
• HHA Surveys: Costs for HHA surveys must be allocated among the benefiting cost centers in accordance with the relative benefits
• Fiscal Year 2014 Centers for Medicare & Medicaid Services (CMS) Reviews: We will work with States to review the FY2014 State
survey budgets to ensure that the HHA survey amounts reflect the appropriate allocation of costs across Medicare, Medicaid,
and State-only sources.