Beverly Enterprises Inc. Makes Announcement.FORT SMITH, Ark.--(BW HealthWire)--July 23, 1998--Beverly Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange :BEV) today announced that it is the subject of a federal government investigation relating to the allocation to the Medicare Program of certain nursing labor costs in its skilled nursing centers from 1990 to 1997. To Beverly's knowledge, the investigation does not involve eligibility for Medicare coverage, actual delivery of care or quality of care provided. The government has not disclosed the origin of this investigation or its intended scope. This investigation is being conducted by the Office of the Inspector General Office of the Inspector General (or OIG) is a common sub-agency within cabinet-level agencies of the United States federal government and serves as auditing and investigative arm of the agency's programs focused on identifying waste, fraud and abuse. (OIG Noun 1. OIG - the investigative arm of the Federal Trade Commission Office of Inspector General independent agency - an agency of the United States government that is created by an act of Congress and is independent of the executive departments ) of the Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Health and Human Services, HHS and by the Department of Justice. Beverly has received subpoenas and has provided substantial information voluntarily. The Company has been informed that its independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. , Ernst & Young LLP LLP - Lower Layer Protocol , also received a subpoena within the last week relating to its review of Beverly's internal controls. Beverly also has been notified by its current Medicare Fiscal Intermediary, Blue Cross of California, that it intends to examine cost reports of Company facilities with respect to the areas that are the focus of the government investigation. Skilled nursing centers are required to allocate labor costs to Medicare-certified units on an "equitable" basis. Beverly has relied on a variety of internal and external processes and practices that are designed to ensure compliance with this requirement. The Company believes that its cost-reporting policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are consistent with government regulations and reflect industry norms for the determination of these cost allocations. However, a determination that Beverly has violated these regulations could have a material adverse effect on Beverly's results of operations and financial position. The consequences of such a determination are discussed in Beverly's quarterly report on Form 10-Q for the period ended March 31, 1998. Beverly Enterprises is the leading provider of post-acute healthcare in the United States. It currently operates 576 skilled nursing facilities, as well as 34 assisted living centers, 170 outpatient therapy clinics, 49 home health agencies and 20 hospice programs.
CONTACT: Beverly Enterprises Inc., Fort Smith
Jim Griffith, 501/484-6912
www.beverlynet.com
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion