OIG audit finds La. over- and underpaid MU incentives

The Office of Inspector General (OIG) has found that the Louisiana Department of Health and Human Services overpaid hospitals $3.1 million in Meaningful Use payments.   

The OIG's audit report examined Louisiana's payouts in 2011 and found that 13 hospitals were overpaid $3.1 million while six hospitals were underpaid by $1.3 million. Overall, the report found that 80 percent of Louisiana hospitals failed to comply with federal guidance and regulations.

The payment errors transpired due to an unclear and incorrect patient volume calculation, OIG officials noted, which led some hospitals to miscalculate the numbers. Moreover, a discharge-related calculation worksheet for hospitals also contained a formula error the state agency never fixed. Numerous clerical errors left unreviewed resulted in incorrect payments for many organizations.

"A review would have shown that the incorrect cost report periods were used, and the supporting documentation would have shown when hospitals included inpatient nonacute-care services," wrote Gloria L. Jarmon, deputy inspector general for audit services at OIG, in the August report.

"State agency personnel did not use the correct cost report periods or review supporting documentation for the numbers provided in the cost reports that were used to calculate incentive payments." Overall, Louisiana paid out $93.4 million for Medicaid EHR incentive payments in 2011.