Audit of IHS Cost Reports (Rev. 1040, 09-11-06)

by  Jared Staheli
June 25th, 2015

All IHS hospitals that convert to CAH status are subject to audit by the FI. CMS’ audit policy can be found in Chapter 8, Contractor Procedures for Provider Audit, of Pub. 100- 06, Medicare Financial Management Manual.

The CAHs are reimbursed under the Medicare Principles of Reasonable Costs. These principles are set forth in the Provider Reimbursement Manual 15-1.

For IHS hospitals that do not convert to CAH status, their cost reports are not subject to audit by Medicare.


Audit of IHS Cost Reports (Rev. 1040, 09-11-06). (2015, June 25). Find-A-Code Articles. Retrieved from

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