Ch. 7, § 26. Record Retention

(a) In the event of a field audit, the nursing facility must have available at the field audit location one or more knowledgeable persons who can explain the nursing facility's financial records, the accounting and control system, and cost report preparation, including attachments and allocations, to the auditors. (b) A nursing facility that is unable to satisfy any of the requirements of this Section will be given a written notice of deficiency and have sixty days after the date of the written notice to correct the deficiency. If, at the end of the sixty days, the nursing facility has not corrected the deficiency, the Department shall withhold 25% of the nursing facility's per diem rate for services provided after the sixtieth day. If, after 120 days from the mailing of the written notice of deficiency, the nursing facility has still not corrected the deficiency, the Department shall withhold all Medicaid payments for services provided after that date. Payment will not be released until the Department determines that the nursing facility corrected the deficiency.