Corporate Compliance

OIG: Hospital should refund $4.9 million in GME costs payments

Compliance Monitor, April 5, 2006

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The OIG is recommending that Boston Medical Center amend its cost report to effectively refund $4.9 million associated with graduate medical education (GME) full-time equivalent (FTE) costs that the hospital did not incur.

The recommendation comes as the result of a recent OIG audit to determine whether Boston Medical Center included the appropriate number of dental residents in its FTE counts when the hospital computed its Medicare GME payments for fiscal years (FY) 2000 through 2002. The hospital inappropriately included a total of 120.15 direct GME FTEs and 113.80 indirect GME FTEs in the counts for FYs 2001 and 2002 without incurring all of the costs of training dental residents in nonhospital sites.

The OIG further recommends that the hospital

  • establish and follow written procedures to ensure that the FTE counts for residents in nonhospital settings include only those FTEs for which the hospital has incurred all or substantially all of the training costs.

  • determine whether errors similar to those identified in the review occurred in Medicare cost reports after FY 2002 and refund any overpayments.

    The hospital generally disagreed with the findings and OIG recommendations related to FY 2002, but did not address findings and recommendations for FY 2001.

      Click here to read the audit report, "Graduate Medical Education for Dental Residents Claimed by Boston Medical Center for Fiscal Years 2000 Through 2002," (A-04-04-06003) issued March 14, 2006.



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