North Carolina's Baptist Hospital Overcharges State Health Plan $1.34M

Wake Forest University Baptist Hospital in Winston-Salem, N.C., received approximately $1.34 million in overpayments between 2003 and 2008 for outpatient services from the state health plan for North Carolina's teachers and state employees, according to a report from the North Carolina Office of the State Auditor (pdf).

According to the report, Baptist Hospital increased rates for outpatient services, and the state health plan did not monitor the contract nor did it contact the hospital. The contract between the two entities did not require a notice of fee increases. Consequently, outpatient fees increased without the knowledge of anyone involved in the state health plan.

According to a Winston-Salem Journal report, Baptist Hospital has declined to repay any of the overpayment because it complied with the terms of the contract. The hospital also said the information of the fees was made available to the state. However, the state auditor thought the hospital had an "ethical obligation" to pay back some or all of the overpayment.

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