Finding 392625 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-09

AI Summary

  • Core Issue: Health centers are not applying sliding fee discounts correctly, with 38 out of 60 encounters tested showing discrepancies.
  • Impacted Requirements: Compliance with sliding fee application processes and accurate billing adjustments based on patients' ability to pay.
  • Recommended Follow-Up: Ensure sliding fee applications are completed for each patient and verify discounts in the billing system; consider increasing internal audits to maintain compliance.

Finding Text

2023-001, 2022-001, 2021-001 – Material Weakness and Material Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 60 sliding fee encounters and noted that 38 of 60 sliding fee encounters tested were discounted the incorrect amount. We further noted that the sliding fee schedule does not fully align with what patients are being discounted, mostly due to rounding to the nearest dollar in the schedule, but applying the exact percentage in billing. Questioned Costs: None Cause and Effect: The Center failed to verify sliding fee discounts were applied correctly to charges and agreed to sliding fee rate schedules. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts per policy should be agreed in the billing system to ensure the proper discounts are entered and updated. In addition, the Center could consider increasing its internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.

Corrective Action Plan

Finding Number: 2023-001, 2022-001, 2021-001: Material Weakness and Material Noncompliance - Sliding Fee Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts per policy should be agreed in the billing system to ensure the proper discounts are entered and updated. In addition, the Center could consider increasing its internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Action Taken: CHASS management concurs with the audit finding and will put the following corrective action plan in place to mitigate this finding in the future: During Sliding Fee Testing it was found that the actual charge to patient (after slidingfee applied) did not match the actual discount that patient should have had. We have reviewed all process on how EPIC loads up charges (table with applied slidingfee tiers) and found that no one had a master list of the charges, when Billing requests a CPT to be added they just go to accounting and gets added as well as when they request changes on charges for CPT code. There is not one set of approved CPT charges/discount creating discrepancies in patients accounts. In response to these audit findings, CHASS has developed and implemented a comprehensive series of improvements. First, implementation of key improvements involves the implementation of a one person only authorized to request changes on table of charges to EPIC. Second, implementation of a verification process for every patient receiving a sliding fee discount. To achieve this, the Center's Customer Service team now generates personalized labels for each eligible patient and cross-checks their entries by the end of each day. This process ensures each item is diligently reviewed to ensure if any errors are made within this process they are rectified immediately via a Supervisor/Team Leader. Through this process the Supervisor/Team Leader now conducts a second review of the labels to ensure accuracy of the Center's labeling system for each patient utilizing the sliding scale discount program. This review also includes the actual charges on EPIC and Discount being verified with CPI Tables. Third implementation, the Center's Billing Department is now responsible for performing regular weekly audits. During these audits, the Billing Department will now randomly select five claims with sliding fee discounts and examine the applied fees and the corresponding discounts applied to the patient's account (using the approved CPT Table). Through these improvements CHASS aims to ensure that the Sliding Fee Discount Policy is used accurately and appropriately. These methods have been incorporated into the Center's Sliding Fee Discount Policy to guarantee their utilization and accuracy, and to further strengthen the Center's initiatives in providing access to needed health care services. Responsible Parties: Angela Salgado, Chief Operating Officer

Categories

Material Weakness Special Tests & Provisions

Other Findings in this Audit

  • 392626 2023-001
    Material Weakness Repeat
  • 392627 2023-001
    Material Weakness Repeat
  • 392628 2023-001
    Material Weakness Repeat
  • 969067 2023-001
    Material Weakness Repeat
  • 969068 2023-001
    Material Weakness Repeat
  • 969069 2023-001
    Material Weakness Repeat
  • 969070 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.32M
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $625,136
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $284,316
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $236,048
16.524 Legal Assistance for Victims $202,228
16.588 Violence Against Women Formula Grants $129,606
16.575 Crime Victim Assistance $98,740
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $94,114
16.017 Sexual Assault Services Formula Program $82,035
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $78,462
16.888 Consolidated and Technical Assistance Grant Program to Address Children and Youth Experiencing Domestic and Sexual Violence and Engage Men and Boys As Allies $46,908
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $1,127