EXECUTIVE SUMMARY:
This final audit report points out improper Medicare payments of approximately $38.5 million were made by Medicare fiscal intermediaries (FI) to prospective payment system (PPS) hospitals for nonphysician outpatient services covering the period December 1987 through October 1990. We also identified about $12.9 million due to beneficiaries representing the coinsurance and deductible portions of the improper charges.