U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of the Saint Francis Hospitalís Controls to Ensure Accuracy of Wage Data Used for Calculating Inpatient Prospective Payment System Wage Indexes," (A-02-05-01004)

April 25, 2006

Complete Text of Report is available in PDF format (428 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of our review was to determine whether Saint Francis Hospital (the hospital) complied with Medicare requirements for reporting wage data in its fiscal year (FY) 2003 Medicare cost report.  The hospital did not fully comply with Medicare requirements for reporting wage data in its FY 2003 Medicare cost report.  The hospital overstated its salaries by $310,562 and understated its hours by 10,940. 

We recommended that the hospital (1) submit a revised FY 2003 Medicare cost report to the fiscal intermediary and (2) implement review and reconciliation procedures to ensure that the wage data reported on future Medicare cost reports are accurate, supportable, and in compliance with Medicare requirements.  The hospital concurred with four of our findings, but disagreed with our finding on unfunded pension and postretirement benefit costs.