Finding Text
2022-001 – Reporting of Provider Relief Fund (“PRF”) Lost Revenues Cluster: Not applicable Federal Granting Agency: Health Resources and Services Administration Award Name: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing #: 93.498 Assistance Listing Title: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution – Period 4 Award Year: January 1, 2020 – December 31, 2022 Criteria - Step Eight of the Steps for Reporting on Use of Funds section of the October 27, 2022 Provider Relief Fund Distributions and American Rescue Plan Rural Distribution Post-Payment Notice of Reporting Requirements requires recipients to report PRF payment amounts received not fully expended on health care-related expenses attributable to COVID-19 may be applied to patient care lost revenues up to the end of the quarter in which the Public Health Emergency ends. Recipients may choose to apply PRF payments toward lost revenues using either of three options up to the amount: (i)of the difference between actual patient care revenues; (ii) of the difference between budgeted (approved prior to March 27, 2020) and actual patient care revenues; or (iii) calculated by any reasonable method of estimating revenues. Condition - In the Period 4 submission of Maimonides Midwood Medical Center (a consolidated subsidiary of the Medical Center), the Period 4 PRF funding amount of $471,535 was correctly included in the Payments to Recipient section but was incorrectly included in the Q1 2022 Estimated Lost Revenues amount as Q1 lost revenues. Cause - The HRSA PRF Reporting instructions were not interpreted correctly, resulting in an error in reporting the Period 4 PRF funding amount received incorrectly as Q1 2022 Estimated Lost Revenues in the Maimonides Midwood Community Hospital Period 4 submission. Effect - Reporting the Period 4 PRF funding amount received as Q1 2022 lost revenues resulted in an incorrect calculation of the Cumulative Lost Revenues Total in the Maimonides Midwood Community Hospital Period 4 submission. The Cumulative Lost Revenues Total in the Period 4 submission of $30,476,952 should have been $30,005,417. Additionally, total unused lost revenues available for future reporting periods of $13,719,407, should have been $13,247,872. Questioned Costs - None noted as this relates to the amount of lost revenues reported and Maimonides Midwood Community Hospital had allowable unused lost revenues exceeding the total PRF funding amount received. Recommendation - We recommended the Medical Center to contact the Health Resources & Services Administrator (HRSA) to determine any required corrective actions related to the incorrect reporting. We also recommend that the Medical Center ensure that future PRF submissions follow the HRSA PRF reporting instructions. Management’s Views and Corrective Action Plan - Management's views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.