Division of Administrative Hearings, Florida
Latest Update: Mar. 30, 1990
The issue to be resolved in this proceeding concerns whether certain costs in a medicaid cost report filed with the Department of Health and Rehabilitative Services ("HRS" or "Department") should be disallowed to the extent they represent costs of construction, including profits paid to a "related party" construction company. The issue, in other words, concerns whether a construction company, related to the owner of the two facilities involved, is owned by or has common ownership of those two companies and is, thus, a "related party" for purposes of pertinent regulations and whether an exception to that "related party principle" applies such that the construction cost (profit) to the construction company can be allowed as a reimbursable medicaid cost.Health provider gets reimbursemt for medicaid costs attrib to construet pro- fit although work by related entity construet. co. did 1/2 work for others.
