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Audit (A-04-09-04034)

Review of Medicare Part A Bad Debts at John Umstead Hospital for Fiscal Year Ended June 30, 2005

Executive Summary

Our sample review of 100 bad debts from John Umstead Hospital for fiscal year 2005 identified 5 bad debts totaling $16,000 that were partially unallowable because they were either not subject to reasonable collection efforts or not related to Medicare deductibles and coinsurance. The unallowable portion of these bad debts totaled $2,300 and resulted in $1,600 in excess reimbursement. In addition, Umstead's improper reporting of its bad debt recoveries resulted in a $2,100 overstatement of bad debts claimed and excess reimbursement of $1,500.

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