Finding Text
Criteria
CAMcare’s internal controls over the special tests and provisions compliance area include the financial screening processes and related control activities to complete patient applications during financial screening, including reviewing and approving patient applications and calculating of scale ratings per patient based on annual income and family size.
Condition
During our testing of special tests and provisions, we noted control deficiencies related to the financial screening process; 18 out of 40 patient records sampled showed instances where the patient scale ratings were calculated incorrectly on the patient applications.
Cause
Financial screening personnel were not applying control procedures correctly in accordance with their financial screening process. Additionally, a revised sliding fee scale was implemented as of 10/1/2023 with updated scale ratings. If patients have an active, valid application in place, CAMcare does not require the patients to return to financial screening, and front desk registration personnel are not required to update the patient applications. At the time of registration, some applications were not updated to indicate the correct rating.
Effect
Possibility of inaccurate discounts given to patients and significant or material noncompliance with major federal programs.
Questioned Costs
None
Perspective Information
We tested a statistically valid sample of 40 patient encounters out of a total population of 11,961 uncompensated care program encounters and determined that the audit finding represented a systemic problem.
Repeat Finding
This is a repeat of Finding # 2022-006.
Recommendation
We recommend that management review the financial screening process in place and closely monitor the patient application process to emphasize the importance of correct implementation of control procedures. Prior to registering patient encounters, front desk personnel should review patient application information to ensure the information agrees to the registration system. Any information that does not reconcile should be reviewed and corrected by the financial screening team promptly, and prior to applying the sliding fee discount to patient billing records.
Additionally, any time CAMcare revises/updates their sliding fee discount schedule, all necessary personnel should be notified of the revisions, and the financial screening team should review and update patient applications accordingly. Such revisions/updates to the scale should be reflected in the billing system promptly upon implementation of the revised scale.
Views of Responsible Officials
Management recognizes the deficiency; on December 10, 2024, CAMcare’s Interim CFO, Jim Cucinotta agreed with this finding, and explained that Management has made significant revisions to the financial screening department’s leadership and workflows, as well as hiring a new Financial Screening Manager, who provided the team with subject matter expertise, additional training, and increased accountability.