Medical Review (MR)

11.1 - Medical Review (MR) (Rev. 174, Issued: 11-17-06; Effective: 10-01-2006; Implementation: 10-02-06) Contractors are required to incorporate Activity Based Costing (ABC) in the budget process. ABC is a management reporting system that allows contractors to focus on the costs of the work activities instead of the standard cost centers associated with the traditional cost accounting structure. ABC identifies an all inclusive business process for each activity so that the total costs of the activity are fully visible to the MR business manager. Refer to Medicare Financial Management Manual, www.cms.gov/manuals/106_financial/fin106index.asp chapters 1, 2, 5, and 6 for more detailed explanation of ABC.