Finding Text
Finding 2023.001: Special Tests and Provisions - Sliding Fee Scale Documentation - Material Weakness
Grantor: U.S. Department of Health and Human Services
Federal Program Names: Health Center Program Cluster: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), COVID-19 - Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), Grants for New and Expanded Services under the Health Center Program, COVID-19 - Grants for New and Expanded Services under the Health Center Program
Federal Assistance Listing Numbers: 93.224 and 93.527
Criteria
Health centers are required to have a corresponding schedule of discounts applied and adjusted on the basis of patients' ability to pay and their eligibility. A patient's eligibility to pay is determined on the basis of the official poverty guideline, as revised by DHHS (42 CFR Sections 51c, 107(b)(5), 56.108(b)(5) and 56.303(f)). The Organization should be implementing and monitoring procedures to properly determine, calculate and review sliding fee discounts issued to patients in accordance with the Organization's sliding fee scale.
Condition
The Organization did not always have the proper slide fee documentation readily available to ensure the proper slide fee discount was applied based on approved policies or the discount was calculated incorrectly.
Cause
The Organization did not have adequate internal controls in place to effectively ensure that all sliding fee discounts were properly calculated based on approved documentation.
Effect or Potential Effect
The Organization did not comply with the appropriate rules and regulations as per the Uniform Guidance.
Questioned Costs
None
Context
A test of 40 sliding fee discount transactions was performed and resulted in 26 instances where the Organization was unable to provide approved documentation, or the sliding fee discount was calculated incorrectly. Our sample was a statistically valid sample.
Identification of Repeat Finding
Yes
Recommendation
The Organization should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.