Mosaic Life Care braces for DSH overpayments, audit findings

Fitch Ratings warned Mosaic Life Care in St. Joseph, Mo., formerly known as Heartland Health, of a possible credit rating downgrade as the federal government investigates overpayments made to Mosaic for providing uncompensated care to Medicaid patients and the uninsured, reports News-Press Now.

Fitch Ratings placed $202 million in bonds on a "ratings watch negative" status as HHS' Office of the Inspector General reviews federal disproportionate share hospital payments made to Mosaic and other Missouri hospitals. "Based on analysis by third-party accountants, management expects this will affect Heartland Health negatively," Fitch reported.

Mosaic CEO Mark Laney, MD, told News-Press Now two external accounting firms and the state of Missouri confirmed the federal overpayment. Mosaic declined to disclose the estimated number of the overpayment.  

Dr. Laney insisted the overpayment and possible credit rating downgrade would not cause long-term harm to the hospital, according to the article.

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