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

Based on our statistical sample results, we estimated that Carolinas Medical Center (CMC) claimed $692,000 for bad debts in fiscal year 2005 that were not reimbursable under Medicare regulations. Of this amount, $667,000 related to bad debts that were with a collection agency. The remaining balance of $26,000 was unallowable for other reasons specifically related to CMC�s actions and should be adjusted on CMC�s cost report. Finally, we identified 25 accounts with $1,200 in bad debt recoveries that were not reported on the cost report.

Filed under: Center for Medicare and Medicaid Services