Finding 968808 (2021-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-04-05
Audit: 302715
Organization: Scott County Hospital (KS)
Auditor: Gbn P A

AI Summary

  • Core Issue: The Hospital incorrectly calculated lost revenues by including new non-COVID related service revenues in its Period 1 submission.
  • Impacted Requirements: This violates the reporting compliance requirement under Public Law 116-136, leading to an understatement of lost revenues by $236,546.
  • Recommended Follow-Up: Ensure future calculations exclude new non-COVID related revenues for accurate baseline comparisons in all PRF reporting.

Finding Text

Identification: 93.498 United States Department of Health and Human Services, COVID-19 Provider Relief Fund; Noncompliance Finding/Significant Deficiency; Reporting Compliance Requirement. Criteria: Lost Revenues (Public Law 116-136). Condition: The Hospital's calculation of lost revenues for the Period 1 submission did not exclude the actual patient care revenues associated with a new non-COVID related service. The new non-COVID related service was not included in the baseline period and therefore the revenue associated with the new non-COVID related service should have been excluded from the comparison period. Cause: The Hospital used total patient care revenues for the computation of lost revenues without adjustment for the new non-COVID related service. Effect: The Hospital understated the calculation of lost revenues by $236,546. Questioned costs: None Context/Perspective: The finding appears to be an isolated issue. Repeat Finding: N/A Recommendations: We recommend that the calculation of lost revenue exclude new non-COVID related patient care revenues to allow for consistent measurement of baseline and lost revenues. Views of Responsible Officials: The Hospital will correct the lost revenue calculations to exclude new non-COVID related patient care revenues in both the baseline and comparison periods in all subsequent PRF reporting.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 392366 2021-001
    Significant Deficiency
  • 392367 2021-002
    Material Weakness
  • 392368 2021-003
    Significant Deficiency
  • 968809 2021-002
    Material Weakness
  • 968810 2021-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.33M
93.697 Covid-19 Testing for Rural Health Clinics $49,461
93.301 Small Rural Hospital Improvement Grant Program $35,666