Corporate Compliance

GOV’T AUDIT INSIDER: OIG finds Medicare overpayments to skilled nursing facilities in Puerto Rico

Healthcare Auditing Weekly, February 22, 2005

Medicare improperly paid approximately $25,690 to skilled nursing facilities (SNF) that were under the administrative responsibility of Cooperativa de Seguros of Puerto Rico, according to an OIG audit report. To qualify for Medicare reimbursement, a SNF stay must be preceded by an inpatient hospital stay of at least three consecutive days, not counting the date of discharge, which is within 30 days of the SNF admission. More than 75% of the SNF stays in Cooperativa's database were not compliant with these regulations, according to the report. The OIG recommends that Cooperativa either recover the overpayment or support the eligibility of the disputed stays, and initiate provider education about qualified SNF stays. During the audit, the OIG did the following:

  • Selected a statistical sample of 200 SNF stays from the database

  • Compared SNF admission to inpatient information on the Common Working File

  • Reviewed the inpatient listing claims screen for each of the 200 SNF stays selected

  • Projected the amount of SNF payments eligible for Medicare reimbursement

  • Adjusted the database of ineligible SNF payments

  • Estimated the lower limit of ineligible SNF payments

  • Calculated Cooperativa's share of the overpayment

    Click here to read the audit report, "Ineligible Medicare Payments to Skilled Nursing Facilities Under the Administrative Responsibility of Cooperativa de Seguros de Vida de Puerto Rico," (A-05-04-00062) issued January 19.

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