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Audit (A-04-09-04038)

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

Executive Summary

Our sample review of 100 bad debts from Broughton Hospital for fiscal year 2005 identified 30 bad debts totaling $38,000 that were partially unallowable because those amounts were not subjected to reasonable collection efforts. The unallowable portion of these bad debts totaled $5,800. Based on these results, we estimated that Broughton claimed 130 such bad debts on its cost report, representing $25,000 in unallowable bad debts, and received $17,500 in related reimbursement.

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