Finding Text
Federal Program – COVID-19 Provider Relief Fund, ALN 93.498, Award Year 2021
Criteria or specific requirement – Activities Allowed/Allowable Costs and Reporting– Pub. L. No. 116-136, 134 Stat. 563
Condition – Lost revenues reported to Health Resources and Services Administrator (HRSA) were not in accordance with Pub L. No. 116-136, 134 Stat. 563.
Questioned Costs – $893,925 was the total amount of lost revenues determined to be over-reported to the federal program. This was calculated by taking the difference between reported quarterly gross patient service revenues and estimated quarterly patient service revenues net of contractual adjustments from third-party payors and bad debt.
Context – The Hospital calculated lost revenues using gross patient service revenues.
Effect – Lost revenues reported to HRSA were overstated.
Cause – The Hospital did not have effective internal control processes in place to ensure the accurate calculation and reporting of lost revenues. Changes to frequently asked questions and guidance from HRSA and management’s inexperience with the program requirements resulted in a material error under the program.
Identification as a Repeat Finding, if Applicable – N/A
Recommendation – The Hospital should implement documented internal control processes specific to understanding and reporting of lost revenues, including review and oversight of data prior to submission.
Views of Responsible Officials and Planned Corrective Actions – The Hospital will continue to monitor the Department of Health and Human Resources Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements and the most recently distributed Provider Relief Fund frequently asked questions, which provide details on requirements related to the program, including further updates as they may occur.