A major reason for the losses involved Medicaid overpayment. The District of Columbia recouped roughly $11 million and halted millions more in future payments, bringing total Medicaid corrections to roughly $17.3 million, according to the report.
UMC has struggled to stay afloat for the past several years. In February 2012, the hospital requested $15 million from local taxpayers to shore up its finances. In 2010, the district had to take over UMC because Specialty Hospitals of America, the previous for-profit owner, defaulted on its payments.
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