Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Inpatient Wage Rate Assignment at Hackettstown Regional Medical Center, Hackettstown, New Jersey," (A-03-05-00005)

March 30, 2006

Complete Text of Report is available in PDF format (1.6 mb). 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 Hackettstown Regional Medical Center (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.  Specifically, the hospital overstated its wage data by $311,908 and understated hours by 1,865.  We recommended that the hospital: (1) submit a revised FY 2003 Medicare cost report; 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.  In its written comments on our draft report, the hospital concurred with our findings and recommendations.