Finding 529480 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-24
Audit: 347499
Organization: Regenesis Health Care, Inc. (SC)
Auditor: Cla

AI Summary

  • Core Issue: Health centers incorrectly applied the sliding fee discount to 4 out of 25 patient accounts, leading to potential billing errors.
  • Impacted Requirements: Compliance with federal guidelines for sliding fee discounts based on patients' ability to pay, specifically using Federal Poverty Guidelines.
  • Recommended Follow-Up: Enhance quality control inspections and provide mandatory biannual training for front desk staff to ensure proper application of discounts and documentation.

Finding Text

Finding 2024-001: Sliding Fee Discount Federal Agency: Department of Health and Human Services Federal Program Name: Health Center Program Cluster Assistance Listing Number: 93.224 Federal Award Identification Number and Year: H8000298 2023/2024 Award Period: 3/1/2023 – 2/28/2024, 3/1/2024 – 2/28/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or specific requirement: Health centers receiving this funding must prepare and apply a sliding fee discount so that the amounts owed for health centers services by eligible patients are adjusted based on the patients ability to pay. Condition: Heath Centers receiving this funding must prepare and apply a sliding fee discount so that the amounts owed for health centers services by eligible patients are adjusted (discounted) based on the patient’s ability to pay using the Federal Poverty Guidelines (FPG). The Centers are required to apply a full discount to fees for services to individuals with income at or below 100% FPG and prorated for incomes between 100% and 200% of the FPG. Questioned costs: None Context: In our sample of 25 patient account, sliding fee scale was applied incorrectly to 4 patients and proper documentation of applications was not maintained. Cause: In our sample of twenty-five (25) patient accounts, the Organization applied the wrong sliding fee scale to four (4) patients and proper documentation of sliding fee applications was not maintained as there were not proper controls in place. Effect: The Organization could charge an incorrect fee or apply a discount in error. Repeat Finding: No Recommendation: CLA recommends that the Organization continue to perform quality control inspections of sliding fee documentation and eligibility determinations to improve results. Views of responsible officials: Management agrees with the finding. HRSA Health Center Program Compliance requirements for the Sliding Fee Discount Program will be ongoing. The quality management and compliance department will increase frequency of internal audits. Front desk staff and their immediate supervisors will be provided with feedback regarding the results. Plans for required performance improvement, including the provision of additional training, will be developed and monitored for completion. Instances of repeated deficiencies will result in corrective action. All front desk staff will be required to participate in mandatory biannual training pertaining to the Sliding Fee Discount Program. The revenue cycle manager is communicating directly with the supervisors of the front desk staff whenever any errors are found in the revenue cycle department to ensure appropriate action is taken.

Corrective Action Plan

ReGenesis Health Care Corrective Action Plan Audit period: July 1, 2023 - June 30, 2024 Audit Finding: Incorrect Application of Sliding Fee Scale and Lack of Proper Documentation ________________________________________ Summary of Audit Finding – Federal Award Program Audit Department of Health and Human Services 2024-001 Health Centers Cluster – Assistance Listing No. 93.224 In a sample of 25 patient accounts, the audit revealed: • Four instances where the incorrect sliding fee scale was applied and lack of proper documentation maintained for sliding fee applications. ________________________________________ Corrective Actions: Staff Training Action: • Conduct mandatory training for General Practice Managers (GPMs) and Patient Service Representatives (PSRs), as well as for all newly hired front desk staff at orientation and annually thereafter. Content: • Process for sliding fee discount program eligibility determination. • Proper application of the sliding fee scale. • Documentation standards and quality improvement/assurance measures. Timeline: Begin training within 30 days from 1/21/25 and establish ongoing annual sessions. Responsible Party: Senior GPM, VP Strategy & Development Action Plan for Slide Application Process: PSR Responsibilities: • Continue scanning all completed slide applications into the system on the same day they are completed. • Ensure all relevant information is entered into the patient’s chart. • Assign scanned slide applications to respective GPMs for review in eCW. GPM Responsibilities: • Review slide applications in D jellybean daily for accuracy. The review should ensure that: o The document has been scanned into the chart. o Calculations are correct. o The correct proof of income and supporting documentation are included. • Discuss any slides requiring correction with the PSR and provide continued education as needed. • Address excessive errors through performance improvement plans and disciplinary actions if necessary. • GPM to ensure sliding fee schedule is correct and all documentation is present before marking the documents as approved in eCW. Auditing: • GPMs will run daily reports in eCW to audit the front desk’s slide application process. • Physicians Services Billing Manager or designee to review slide application information to ensure correct sliding scale has been applied. • Director of Quality Improvement will also audit process to ensure GPMs are completing this expectation. Standardized Procedures Action: • Review and update the Sliding Fee Discount Program Policy and Procedures annually and as needed • Implement a checklist for staff to ensure proper documentation. • The Physician Services Billing Manager will train billing staff on applying sliding fee discount program adjustments and will conduct internal audits to ensure the accuracy of payer status. Timeline: Review current policies and procedures by 2/7/25. Responsible Party: Senior GPM, Chief Financial Officer and Chief Administrative Officer Quality Control Measures Action: • Establish a quality control process to regularly review sliding fee documentation and application accuracy. Frequency: Quarterly reviews of a minimum of 10 patient accounts processed, from multiple ReGenesis Health Care sites where services from all scopes are rendered. Review Team: Compliance and Quality Improvement/Assurance teams Timeline: Begin reviews in Q1 2025. Responsible Party: Chief Administrative Officer, Chief Financial Officer, Director of Quality Improvement and Risk Management ________________________________________ Monitoring and Evaluation • Quarterly Reports: Summary of quality control findings shared with leadership. • Key Performance Indicators (KPIs): o Reduction in errors in sliding fee application. o 100% compliance with documentation requirements. • Audit Follow-Up: Prepare for Operational Site Visit (OSV) to confirm implementation of corrective actions. • Responsible Party: Chief Administrative Officer, Chief Financial Officer ________________________________________ Communication Plan • Staff Updates: Regular updates during Leadership and QI/QA team meetings on progress and reminders of proper procedures. • Leadership Reports: Quarterly updates to the Board of Directors and RHC Executive Team. ________________________________________ Conclusion ReGenesis Health Care is committed to addressing the identified issues and ensuring compliance with all sliding fee scale policies and guidelines. By implementing the outlined corrective actions, RHC aims to strengthen processes and maintain the highest standards of service for our patients. If the Department of Health and Human Services has questions regarding this plan, please call Rich Long, CFO, at 564-504-3658.

Categories

Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1105922 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $249,780
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $40,714
93.217 Family Planning Services $15,000