Audit: University overstated wage data by $90 million
Healthcare Auditing Weekly, October 3, 2006
The University of California's Los Angeles Medical Center did not comply with Medicare requirements for reporting wage data for pension and post-retirement benefit costs, according to an OIG audit that reviewed the center's 2004 wage data.
Instead, the center reported inaccurate data to the government, which affected the numerator of the wage rate calculation and overstated the center's wage data by $90 million.
The OIG's correction of the data reduced its average hourly wage rate by approximately 21% -- from $48.06 to $37.96.
As a result, the OIG asked the center to submit a revised 2004 Medicare cost report to the fiscal intermediaries to correct the overstated wage data and to implement and revew and reconciliation procedures to ensure future wage data information is accurate.
The center disagreed with the OIG's findings and recommendations.
Read the entire audit on the OIG's Web site.
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