MedicaidDocumentationHigh impact
Payment Error Rate Measurement (PERM) Audits
Illinois Medicaid - HFS·IL·Provider Notice
Effective date
Jul 30, 2021
We identified it
Jun 20, 2026
Summary
Illinois Medicaid providers, particularly Long Term Care facilities, are reminded that all services are subject to Payment Error Rate Measurement (PERM) audits which can result in overpayment recovery and penalties. Providers must maintain complete, accurate documentation including physician orders, certifications, nursing notes, and treatment records to avoid common audit findings of missing or inadequate documentation.
Action Required
Immediately: All Illinois Medicaid providers must ensure complete documentation is maintained for all services, including physician orders, physician certification/recertification, transfer forms, admission face sheets, daily patient presence documentation, medication administration records, nursing assessments and notes, progress notes, and treatment plans. All documentation must be complete, accurate and signed where appropriate. Billing team should audit current documentation practices to ensure PERM compliance as audit findings will result in overpayment recovery and potential sanctions including payment suspension or provider termination.