To hold the consultant contracted by Health Services to the intended terms and conditions of the contract to develop and administer the reimbursement rate system, Health Services should Include in its 60-day response to this audit report or sooner, formal and detailed documentation that includes all of the complexities of the reimbursement rate development methodology and evidence that the methodology, when used, produces the reimbursement rates Health Services published for fiscal year 2005-06.
The Department of Health Care Services (DHCS) has fully implemented this recommendation.
In its one year progress report, DHCS reported that it had prepared a contract amendment that included a turnover plan. The turnover plan required the consultant to provide the logic and business rules of the reimbursement rate system and train DHCS employees to operate the system.
DHCS staff has received the training necessary to operate the reimbursement rate system and has created a software application capable of calculating reimbursement rates for the upcoming 2009-10 rate year. (2008-041, pp. 42-43)
Agency responses received after June 2013 are posted verbatim.