Investigators link Mosaic's aggressive collection methods to understaffing issues

A federal investigation into Mosaic Life Care's financial assistance practices revealed the hospital did not employ enough staff to adequately assess incoming patients for financial assistance eligibility, reports National Law Review.

The investigation began after reports accused the hospital of aggressively suing low-incomes patients over non-payment for medical services, according to the article.

The Affordable Care Act requires hospitals to establish financial assistance programs and make reasonable efforts to determine whether a patient is eligible for the program.

The investigation found Mosaic did not have adequate personnel to manage its financial assistance programs, according to National Law Review.

In response to the investigation, Mosaic made the following changes.

  • It hired seven advocates to assist with Medicaid supplemental assistance programs and Social Security disability programs.
  • It assigned two additional financial counselors to assist patients navigating financial assistance programs. Mosaic plans to hire additional financial counselors to work at its outpatient clinic.
  • It created a three-month debt forgiveness period during which all individuals can apply or re-apply for financial assistance programs.
  • Mosaic lowered the threshold for financial assistance applications. As a result, 5,070 out of 5,542 financial assistance applications were approved.
  • It no longer charges interest on accounts until final judgment.
  • It increased the time period between when patients are notified of financial assistance programs and when collection processes begin from 120 days to 180 days.

More articles on revenue cycle management issues: 

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From paper-based to digital payment programs: Why more hospitals are making the leap for business-to-business payments

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