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Audit (A-04-09-00055)

Review of Medicare Part A Bad Debts at Carolinas Medical Center for the Fiscal Year Ended December 31, 2005

Executive Summary

Based on our statistical sample results, we estimated that Carolinas Medical Center (CMC) claimed $1,032,338 for bad debts that were not reimbursable under Medicare regulations. Of this amount, $1,003,043 related to bad debts that were with a collection agency. The remaining balance of $29,000 was unallowable for other reasons specifically related to CMC’s actions and should be adjusted on CMC’s cost report. Finally, we identified 11 accounts with $650 in bad debt recoveries that were not reported on the cost report.

Complete Report

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Office of Inspector General, U.S. Department of Health and Human Services | 330 Independence Avenue, SW, Washington, DC 20201