Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of UMass Memorial Medical Centerís Reported Fiscal Year 2006 Wage Data," (A-01-07-00509)

January 17, 2008

PDF File Complete Text of Report is available in PDF format (792 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


UMass Memorial Medical Center (the Hospital) did not fully comply with Medicare requirements for reporting wage data in its FY 2006 Medicare cost report.  Specifically, the Hospital overstated its wages by $13,408,945 and 139,916 hours.  Our correction of the Hospitalís errors decreased the average hourly wage rate approximately 2 percent.  The errors occurred because the Hospital did not sufficiently review and reconcile wage data to ensure that all amounts reported were accurate, supportable, and in compliance with Medicare requirements. 

We recommended that the Hospital (1) submit a revised FY 2006 Medicare cost report to the fiscal intermediary to correct the wage data overstatements totaling $13,408,945 and 139,916 hours and (2) implement review and reconciliation procedures to ensure that the wage data reported in future Medicare cost reports are accurate, supportable, and in compliance with Medicare requirements.  The Hospital did not agree with all of our findings.  Nevertheless, the Hospital stated that it would resubmit its Medicare cost report.