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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Bad Debts at the University of Alabama at Birmingham Hospital," (A-04-00-06005)

December 13, 2001

Complete Text of Report is available in PDF format (313 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report points out that the University of Alabama at Birmingham Hospital (UAB Hospital) claimed $7,203,293 in Medicare bad debts on its 1997 cost report.  Of that amount, only $1,775,045 represented allowable Medicare bad debts because UAB Hospital had not fully developed a patient accounts receivable system to accumulate complete, accurate, and timely Medicare bad debts.  We recommended that UAB Hospital improve its patient accounts receivable system and claim only $1,775,045 as Medicare bad debts on its 1997 cost report.