Cost Allocations for Surveys of Home Health Agencies (HHAs)

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Cost Allocations for Surveys of Home Health Agencies (HHAs)
Memo #
Posting Date
Fiscal Year
• 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 received.
• 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.