Published 10/11/2021

The Audit area performs desk reviews and audits of Medicare cost reports, including S-10 and wage index and occupational mix reviews, issues the Notice of Program Reimbursement (NPR), and processes cost report reopenings and appeals.

Wage Index and Occupational Mix

The wage index for all eligible short-term acute IPPS hospitals are reviewed annually. Every three years, data are collected and reviewed on the occupational mix of employees for each short-term, acute care hospital.

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S-10 Audits

Providers eligible for Disproportionate Share Hospital Uncompensated Care Payment (DSH UCP) are subject to an audit of data reported on worksheet S-10 of the Medicare cost report.

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Desk Review and Audit

Medicare cost reports are subject to reviews to determine the adequacy, completeness and reasonableness of the data reported. Based on initial review findings, cost reports may be subject to in-house or field audits.

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For more information: How to Submit Documentation for Desk Reviews and Audits


A reopening of a cost report may be requested within three years of the NPR if the following conditions are met:

  • Cumulative reimbursement impact exceeds $10,000
  • New and material evidence is included, or a clear or obvious error was made

Requests must be in writing and supporting documentation must be submitted with the reopening request.

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For more information: Cost Report Reopenings


Providers have the right to appeal cost report review determinations. An appeal of a cost report issue can be requested, within 180 days of the NPR, through the electronic filing system, Office of Hearings Case and Document Management System (OH CDMS) located at .

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For more information: Cost Report Appeals

General Information

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