Texas incorrectly distributes $12.5M in MU payments

An inspection conducted by the Office of the Inspector General found the Texas Health & Human Services Commission made $12.5 million in incorrect payments in the Medicaid meaningful use program from 2011 through 2014.

The review found the state agency did not always make EHR incentive payments in accordance with federal and state requirements. Overall, the agency made incorrect payments to 38 hospitals — 26 were overpaid and 12 were underpaid — for a net overpayment of nearly $12.5 million.

Additionally, payments distributed after Dec. 31, 2014 will also be incorrect, as hospital calculations for payments are paid out over three years.

The OIG found the errors likely occurred because the agency told hospitals to not include inpatient non-acute care services in their payment calculations, but the agency did not check to make sure hospitals removed such services from their calculations. Additionally, the state agency did not follow certain federal regulations for calculating hospital incentive payments, nor did it review supporting documentation provided in cost reports, according to the review.

The state agency said it would repay the government the $12.5 million overpayment and will take corrective actions.

More articles on meaningful use:

20 things to know about meaningful use
2 EHRs stripped of ONC certification
MGMA calls on CMS to extend MU reporting period to Q1 2016

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