Finding Text
Finding: 2024-002 Sliding Fee Discounts
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
Assistance Listing No. 93.224 and 93.527
Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303
Condition: Health Centers receiving funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing the following errors were noted:
• 9 patients were given discounts when applications were incomplete or expired
• 3 patients who qualified for discounts were given an incorrect discount
• 1 patient with income greater than 200% poverty was given a discount
• 1 patient with income less than 200% poverty was not given a discount
Cause: There were deficiencies in internal controls designed to ensure that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale. The sliding fee scale file was not properly utilized in the application of discounts provided to certain patients.
Effect: Discounts were not properly applied to patient accounts.
Questioned Costs: None reported.
Context/Sampling: For 14 of 48 self-pay patients selected for testing, applications were incomplete or expired or incorrect discounts were given. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that staff be trained to review sliding fee discounts applied to ensure they are accurate and that proper documentation is obtained. In addition, it is recommended that supervisory level personnel select and review a sample of sliding fee applications and discounts to ensure that staff are properly applying the discounts.
Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above.
Contact Person: Shantelle Simpson, President & CEO
Anticipated Date of Completion: January 31, 2025