U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Methodist Hospital Wage Data for the Fiscal Year 2009, Wage Indexes," (A-06-07-00098)

June 13, 2008

PDF FileComplete Text of Report is available in PDF format (248 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Methodist Hospital (the Hospital) overstated contract labor costs by $617,000 and understated contract labor hours by 11,143 on its fiscal year (FY) 2006 Medicare cost report.  Under the inpatient prospective payment system for acute-care hospitals, Medicare Part A pays hospital costs at predetermined, diagnosis-related rates for patient discharges.  The Centers for Medicare & Medicaid Services (CMS) adjusts prospective payments by the wage index applicable to the area in which each hospital is located.  While gathering the requested data for the audit, the Hospital identified the errors and reported them to the fiscal intermediary.  Because the fiscal intermediary corrected the Hospitalís Medicare cost report, this report has no recommendations.