Audit 317757

2022-002 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers Not applicable Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient service revenues for the periods reported on in its reporting of actual net patient service revenues for its calculation of lost revenues due to coronavirus. Condition Patient service revenues were not reported net of contractual adjustments and bad debt. Context This finding appears to be an isolated problem. Cause The Hospital prepared its lost revenue calculations using gross patient service revenues without including contractual adjustments and bad debt. Effect The actual patient service revenues for 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If net patient service revenues had been reported, the Hospital would still have sufficient lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Hospital’s retention of the Provider Relief Funds. Recommendation We recommend the Hospital’s management correct its lost revenue calculation for any future reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions Net Patient Revenues by Financial Class are not available in the Meditech system and can only be estimated. In the event there is another PHE that results in more than $750,000 received by facility, Net Patient Revenue will be calculated and reported.

2022-002 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers Not applicable Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient service revenues for the periods reported on in its reporting of actual net patient service revenues for its calculation of lost revenues due to coronavirus. Condition Patient service revenues were not reported net of contractual adjustments and bad debt. Context This finding appears to be an isolated problem. Cause The Hospital prepared its lost revenue calculations using gross patient service revenues without including contractual adjustments and bad debt. Effect The actual patient service revenues for 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If net patient service revenues had been reported, the Hospital would still have sufficient lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Hospital’s retention of the Provider Relief Funds. Recommendation We recommend the Hospital’s management correct its lost revenue calculation for any future reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions Net Patient Revenues by Financial Class are not available in the Meditech system and can only be estimated. In the event there is another PHE that results in more than $750,000 received by facility, Net Patient Revenue will be calculated and reported.