Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Inpatient Rehabilitation Facility Admissions at Whittier Rehabilitation Hospital for Calendar Year 2003," (A-01-04-00531)

April 17, 2007


PDF File Complete Text of Report is available in PDF format (1.97 mb). Copies can also be obtained by contacting the Office of Public Affairs at
202-619-1343.


EXECUTIVE SUMMARY:

The objective of our review was to determine whether Whittier Rehabilitation Hospital (the Hospital) submitted inpatient rehabilitation facility (IRF) claims that met Medicare requirements.

The Hospital submitted numerous IRF claims that did not meet Medicare requirements.  For 47 of the 100 claims in our sample, an IRF was not the appropriate setting for the beneficiaries.  Based on the sample results, we estimate that Medicare overpaid the Hospital approximately $4.8 million for IRF claims during 2003.

We recommend that the Hospital refund to the Medicare program the $4.8 million estimated overpayment for 2003; identify and refund any overpayments for subsequent years’ IRF claims that did not meet Medicare requirements; and strengthen its preadmission screening procedures to provide reasonable assurance that beneficiaries who are admitted for IRF services require treatment at the IRF level of care, are capable of significant practical improvement, and are able to participate in intensive rehabilitation.  The Hospital strongly disagreed with our findings and recommendations.