Specifically, the hospital reported overstated wage data, totaling $4.9 million and 9,907 hours, which affected the numerator and denominator of its wage rate calculation, according to the OIG. The correct wage data decreased the hospital’s average hourly wage rate approximately 1.8 percent, from $53.38 to $52.43.
Due to the errors in the hospital’s FY 2010 Medicare cost report, the OIG estimated that in FY 2014 Medicare overpaid the hospital $248,620 and overpaid five other hospitals in the same core-based statistical area a total of $740,896.
Based on its findings, the OIG recommended the hospital implement review and reconciliation procedures to ensure that the wage data it reports in future Medicare cost reports are accurate, allowable, supportable and in compliance with Medicare requirements.
Danbury Hospital concurred with the OIG’s findings and recommendations and provided information on the hospital’s corrective action plan.
More articles on finance and revenue cycle management:
MediGain realigns international operations and vendors: 3 things to know
New tool available to help hospitals achieve price transparency: 4 things to know
Toledo Radiological Associates continues RCM agreement with Zotec Partners: 3 things to know
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
