Guidance for DV Standard 7

Standard 7 is applicable only if an SO outsourced any of the data collection or validation processes to a delegated entity. The DVC selects (N/A) in the EES if Standard 7 isn’t applicable to the reporting section or contract under review.

Implementation Guidance

Assess the following if data collection or reporting for a reporting section is delegated to another entity:

• Determine if the SO has policies and procedures in place for overseeing the delegated entity’s reporting process/results for the reporting section under review.
• Determine if the SO starts and adheres to the policies and procedures referenced above. Check if any data for the reporting section under review negatively changed by a failure to start or follow these policies and procedures.
• Plans aren’t expected to replicate the delegated entity’s process and recalculate all their numbers but are expected to have policies and procedures in place for routine checking to affirm the quality and timeliness of the data. CMS expects that these policies and procedures are started as often as needed to verify the delegated entities’ reporting. 

SOs are responsible for delegated entities’ calculations and numbers; if they’re incorrect, the responsibility ultimately falls on the SO.