FAC Explorer

Audit 27795

FY End
2022-08-31
Total Expended
$12.02M
Findings
2
Programs
2
Organization: Hendrick Medical Center (TX)
Year: 2022 Accepted: 2023-04-03
Auditor: Forvis

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30511 2022-001 Significant Deficiency - L
606953 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.461 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $7.15M Yes 0
93.498 Covid-19 Provider Relief Fund and American Resuce Plan (arp) Rural Distribution $4.87M Yes 1

Contacts

Name Title Type
KZ94NSB42EL5 Jeremy Walker Auditee
3256702000 Danielle Zimmerman Auditor
No contacts on file

Notes to SEFA

Title: Note 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hendrick Health (Hendrick) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hendrick, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hendrick.This schedule includes the expenditures of the following entities:1.)Hendrick Medical Center (TIN 75-0827446)2.)Hendrick Surgery Center, LLC (TIN 81-1804826)3.)Hendrick Southwestern Health Development Corporation (TIN 75-1598794)4.)Hendrick Hospice Care, Inc. (TIN 75-1835287)5.)Hendrick Anesthesia Network (TIN 75-2728889)6.)HPN RO Billing Services, LLC (TIN 81-3892121)7.)Hendrick Urgent Care, LLC (86-3160508)8.)Hendrick Provider Network (75-2660403)9.)Hendrick Medical Center Brownwood (TIN 85-1941193) De Minimis Rate Used: N Rate Explanation: Hendrick has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 4 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hendrick Health (Hendrick) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hendrick, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hendrick.This schedule includes the expenditures of the following entities:1.)Hendrick Medical Center (TIN 75-0827446)2.)Hendrick Surgery Center, LLC (TIN 81-1804826)3.)Hendrick Southwestern Health Development Corporation (TIN 75-1598794)4.)Hendrick Hospice Care, Inc. (TIN 75-1835287)5.)Hendrick Anesthesia Network (TIN 75-2728889)6.)HPN RO Billing Services, LLC (TIN 81-3892121)7.)Hendrick Urgent Care, LLC (86-3160508)8.)Hendrick Provider Network (75-2660403)9.)Hendrick Medical Center Brownwood (TIN 85-1941193) De Minimis Rate Used: N Rate Explanation: Hendrick has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Hendrick did not have any federal loan programs during the year ended August 31, 2022.
Title: Note 5 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hendrick Health (Hendrick) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hendrick, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hendrick.This schedule includes the expenditures of the following entities:1.)Hendrick Medical Center (TIN 75-0827446)2.)Hendrick Surgery Center, LLC (TIN 81-1804826)3.)Hendrick Southwestern Health Development Corporation (TIN 75-1598794)4.)Hendrick Hospice Care, Inc. (TIN 75-1835287)5.)Hendrick Anesthesia Network (TIN 75-2728889)6.)HPN RO Billing Services, LLC (TIN 81-3892121)7.)Hendrick Urgent Care, LLC (86-3160508)8.)Hendrick Provider Network (75-2660403)9.)Hendrick Medical Center Brownwood (TIN 85-1941193) De Minimis Rate Used: N Rate Explanation: Hendrick has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended August 31, 2022, Hendrick received $0 in federally donated personal protective equipment in response to the COVID-19 pandemic (unaudited).

Finding Details

Finding 2022-001
Reference Number Finding 2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ALN 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) Condition ? Hendrick is required to prepare and submit period two and period three Provider Relief Fund reports. The reports are to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? N/A Context ? The period one and period two Provider Relief Fund reports were submitted and included a lost revenue calculation under option 1, which compared 2020 and 2021 revenue to 2019 revenue. Under option 1, quarterly revenues were required to be reported by payor class. Hendrick incorrectly allocated quarterly revenue by payor class based on a payor mix derived from gross revenue, rather than net patient service revenue. Effect ? Hendrick did not properly report lost revenues by financial class. Cause ? Hendrick did not appropriately report revenue by payor class. Identification as a repeat finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with this finding and will review procedures regarding lost revenue calculations to ensure amounts reported are accurate for future reporting periods. Management notes that while net patient service revenue was not appropriately reported based on financial class, if the PRF reporting was revised for the errors identified, there would be no impact on lost revenues and PRF funding would still be retained based by Hendrick.
Finding 2022-001
Reference Number Finding 2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ALN 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) Condition ? Hendrick is required to prepare and submit period two and period three Provider Relief Fund reports. The reports are to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? N/A Context ? The period one and period two Provider Relief Fund reports were submitted and included a lost revenue calculation under option 1, which compared 2020 and 2021 revenue to 2019 revenue. Under option 1, quarterly revenues were required to be reported by payor class. Hendrick incorrectly allocated quarterly revenue by payor class based on a payor mix derived from gross revenue, rather than net patient service revenue. Effect ? Hendrick did not properly report lost revenues by financial class. Cause ? Hendrick did not appropriately report revenue by payor class. Identification as a repeat finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with this finding and will review procedures regarding lost revenue calculations to ensure amounts reported are accurate for future reporting periods. Management notes that while net patient service revenue was not appropriately reported based on financial class, if the PRF reporting was revised for the errors identified, there would be no impact on lost revenues and PRF funding would still be retained based by Hendrick.