Finding 602773 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: Adjustments to patient charges were inconsistent with Oak Orchard’s sliding fee discount schedule (SFDS), leading to errors in billing.
  • Impacted Requirements: Health centers must apply discounts based on patient ability to pay and maintain proper documentation and review processes.
  • Recommended Follow-up: Evaluate and improve the current process, provide training for staff, and assign a dedicated reviewer to ensure compliance with SFDS and billing procedures.

Finding Text

2022-001 - Health Centers Cluster Federal Agency ? U.S. Department of Health and Human Services Grant Period ? Year ended December 31, 2022 Criteria - Health centers must prepare and apply a sliding fee discount schedule (SFDS) so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay. The health center must demonstrate adjustments to charges are consistent with the health center?s SFDS. Condition - We attempted to recalculate the applied discount using Oak Orchard?s policy and the patient documentation provided, noting instances where the adjustments to charges were inconsistent with Oak Orchard?s SFDS. Cause - Early in 2022, the individual assigned to review the adjustments resigned and there was no individual assigned to review the process. Effect - Out of our sample of 20 selections, we identified eight exceptions based on the SFDS. Three selections had adjustments made incorrectly to the patient accounts by the outsourced billing company. Five selections had the adjustment applied incorrectly based on the information in the patient?s application or other patient information on file. Further, 15 of our 20 selections had adjustments applied without proper documentation or review which was not in accordance with Oak Orchard?s policies and procedures. Recommendation - We recommend evaluating the current process and either changing it to match what is being done or provide education those involved in the process to adhere to Oak Orchard?s existing written policies and procedures in this area. We also encourage Oak Orchard to consider assigning a dedicated individual to regularly review the sliding fee visits to ensure compliance. This should be someone who is knowledgeable of the sliding fee requirements and Oak Orchard?s billing processes and procedures. We acknowledge that Oak Orchard?s sliding fee is complex and have discussed with management that there could be opportunity to simplify the process to reduce the administrative burden as well as the likelihood for errors such as those described above.

Categories

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Other Findings in this Audit

  • 26331 2022-001
    Significant Deficiency
  • 26332 2022-001
    Significant Deficiency
  • 602774 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $4.03M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $2.30M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.90M
10.766 Community Facilities Loans and Grants $1.11M
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $688,549
93.498 Provider Relief Fund $575,051
93.991 Preventive Health and Health Services Block Grant $71,495
93.994 Maternal and Child Health Services Block Grant to the States $47,276