Danbury (Conn.) Hospital failed to comply with Medicare requirements for reporting wage data in its fiscal year 2010 Medicare cost report, according to a recent audit report from HHS' Office of Inspector General.
Specifically, the hospital reported overstated wage data, totaling $4.9 million and 9,907 hours, which affected the numerator and denominator of its wage rate calculation, according to the OIG. The correct wage data decreased the hospital's average hourly wage rate approximately 1.8 percent, from $53.38 to $52.43.
Due to the errors in the hospital's FY 2010 Medicare cost report, the OIG estimated that in FY 2014 Medicare overpaid the hospital $248,620 and overpaid five other hospitals in the same core-based statistical area a total of $740,896.
Based on its findings, the OIG recommended the hospital implement review and reconciliation procedures to ensure that the wage data it reports in future Medicare cost reports are accurate, allowable, supportable and in compliance with Medicare requirements.
Danbury Hospital concurred with the OIG's findings and recommendations and provided information on the hospital's corrective action plan.
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