Finding 1074626 (2023-001)

Federal Program Name: COVID-19 – Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services (HHS) Federal Assistance Listing Title and Number: COVID-19 – Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, 93.498 Criteria or Specific Condition: Activities Allowed or Unallowed and Reporting Condition: Lost revenues for the period January 1, 2023 through June 30, 2023 from submission #5 were miscalculated. Questioned Costs: Yes. The dollar value associated with the lost revenues miscalculation is approximately $4,225,000. Context: The Hospital excluded a portion of its long-term care operations from its 2023 revenue, which appeared to reflect lost revenue. Effect: The Hospital overstated its calculated and reported lost revenue related to the January 1, 2023 through June 30, 2023 period, which should have been zero. Cause: Internal controls surrounding the review and submission of required reports were not adequately applied to ensure accuracy of required elements. Repeat Findings: No Recommendation: We recommend the Hospital evaluates relevant PRF data and information, including lost revenues, to HRSA under published guidance.