Auditor finds Louisiana health agency mismanaged Medicaid payments: 5 things to know

For the second year, the Louisiana legislative auditor found the state's department of health and hospitals failed to adhere to legally required processes, costing taxpayers tens of millions of dollars, according to The Advocate.

In letters to the auditor, DHH officials mainly agreed with the auditor's findings.

Below are 5 key management issues cited by the auditor report:

1. The DHH did not establish alternate procedures to pursue and recover

previously identified instances of third-party liability that totaled approximately $29 million.

2. The agency paid New Orleans East Hospital $10.6 million for uncompensated care without following proper federal procedures.

3. The DHH failed to install proper checks to ensure timely filling and payment of Medicaid claims.

4. For uncompensated care, the agency paid Eastern Louisiana Mental Health System $6.6 million more than the maximum allowed by the state, exceeding 100 percent of the hospital's documented uncompensated care costs.

5. A $92 million error was not detected for over a year due to improper completion of drug rebates.

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