Finding 1235846 (2026-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2026
Accepted
2026-09-21
Audit: 411472
Organization: Outpatient Medical Center, Inc. (LA)
Auditor: DZA PLLC

AI Summary

  • Core Issue: Incorrect sliding fee discounts were applied due to inadequate controls in the billing process.
  • Impacted Requirements: Compliance with federal sliding fee discount criteria under the Health Center Program.
  • Recommended Follow-Up: Strengthen controls by implementing supervisory reviews, reconciling billed amounts, documenting reassessments, and training staff on sliding fee requirements.

Finding Text

2026-005 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 Health Center Program Cluster Award Numbers H80CS00513 Criteria [X] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Special Tests and Provisions requires compliance with the program-specific sliding fee discount requirements. The underlying Health Center Program criteria are Section 330(k)(3)(G) of the Public Health Service Act; 42 U.S.C. § 254b(k)(3)(G); and 42 CFR § 51c.303(f), (g), and (u). This finding appears to be an isolated problem. Condition For one item, the patient’s income and family size placed the patient in discount tier B, but the incorrect discount category was applied. Cause The Organization did not have adequate controls to ensure sliding fee discounts were accurately applied. Specifically, staff did not consistently select the correct discount tier, and management did not timely review discounted accounts to confirm patient charges agreed to the approved sliding fee discount schedule. Effect Failure to properly calculate and apply sliding fee discounts may result in patient charges that do not align with federal requirements or the approved sliding fee schedule, potentially leading to incorrect patient responsibility amounts. Context In a sample of 40 patient encounters selected with sliding fee discount, we noted one selection who had the incorrect sliding fee applied. Recommendation We recommend that management strengthen controls over the sliding fee process by requiring supervisory review of income documentation, family size, and discount-level determinations before billing; periodically reconciling billed amounts to the approved sliding fee schedule; documenting reassessments at required intervals; and training billing and intake personnel on the current sliding fee requirements. Views of responsible officials and planned corrective action Management is in agreement with this finding and will take corrective action as outlined on page 35.

Corrective Action Plan

2026-005 Special Tests and Provisions Corrective action planned: In December 2025, responsibility for administration of the Sliding Fee Discount Program (SFDP) was transferred from the COO to the CFO/DFO. Several upgrades in tools used for determinations, reporting, and quality assurance were immediately instituted. OMC review now includes electronic calculations of income, and several instances of documenting the SFDP appear on the application. Furthermore, each application package now includes a copy of the OMC Federal Poverty Level sliding scale with the determination clearly marked on the form. OMC’s SFDP Scales are also displayed in the lobby area and other visible areas at all OMC sites. Finally, the CFO/DFO performs a quarterly audit of all applications entered in that quarterly period. Each application is reviewed for completeness, and each participant’s account is reviewed for proper application of the SFDP. Any findings are corrected immediately and reported to the Quality Assurance committee so methods can be developed to prevent future errors. Anticipated completion date: 12/31/2025 Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

Categories

Special Tests & Provisions Material Weakness Reporting Significant Deficiency

Other Findings in this Audit

  • 1235843 2026-002
    Material Weakness Repeat
  • 1235844 2026-003
    Material Weakness Repeat
  • 1235845 2026-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $3.30M