Finding 1218191 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-23
Audit: 404425
Organization: La Familia Medical Center (NM)

AI Summary

  • Core Issue: One patient lacked a sliding fee discount application, and two received incorrect discounts due to clerical errors.
  • Impacted Requirements: Compliance with Title 42 Chapter 1 Subchapter D Section 51c303(f) regarding accurate fee schedules and patient discounts.
  • Recommended Follow-Up: Review and strengthen internal controls for the sliding fee process to ensure accurate application and documentation retention.

Finding Text

Criteria or Specific Requirement Per Title 42 Chapter 1 Subchapter D Section 51c303(f), “Health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay.” Condition and Context During our testing of sixty sliding fee discounts for health center patients qualifying for reduced charge visits, we identified one visit that did not have a sliding fee discount application on file to verify the sliding fee discount amount and two visits where the patient received an incorrect sliding fee adjustment based on their income and family size. Effect Potential that a patient would not receive the appropriate sliding fee discount or may receive a discount when they have not applied for one. Questioned Costs None identified. Cause Clerical error in which either the sliding fee rate was miscalculated, the incorrect sliding fee rate was selected and applied, or the sliding fee application was not scanned into the patients file due to lack of an oversight process in place. Recommendation We recommend the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that all documentation supporting the sliding discount provided is retained. Views of Responsible Officials These errors are due to incorrect slide percentage amounts being put into eCW. There is also a known issue within eCW where the eCW changes the slide amount to either 100% or a different slide than was entered. The Organization has found a work around so that the Organization can fix this issue before claims are adjusted. Billing will start reviewing slide documents prior to applying slide to make sure that the percentage entered into eCW is correct for income/family size. These will also be reviewed by the front desk manager and lead patient service representative.

Corrective Action Plan

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommend the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that all documentation supporting the sliding discount provided is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: These errors are due to incorrect slide percentage amounts being put into eCW. There is also a known issue within eCW where the eCW changes the slide amount to either 100% or a different slide than was entered. The Organization has found a work around so that the Organization can fix this issue before claims are adjusted. Billing will start reviewing slide documents prior to applying slide to make sure that the percentage entered into eCW is correct for income/family size. These will also be reviewed by the front desk manager and lead patient service representative.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1218186 2025-002
    Material Weakness Repeat
  • 1218187 2025-002
    Material Weakness Repeat
  • 1218188 2025-002
    Material Weakness Repeat
  • 1218189 2025-003
    Material Weakness Repeat
  • 1218190 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers $4.97M
93.493 Congressionally Directed Spending for Construction Projects $28,251
93.778 GRANTS TO STATES FOR MEDICAID $12,933
93.527 FY 2023 Bridge Access Program $894
93.527 Consolidated Health Centers $0