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Audit (A-07-09-02760)

Review of Geographic Classification of Thomasville Medical Center for Medicare Operating Disproportionate Share Hospital Payment

Executive Summary

Geographic classifications used by Cahaba Safeguard Administrators, LLC (Cahaba), to calculate the Medicare operating disproportionate share hospital (DSH) adjustment resulted in an overpayment at one hospital. Of the operating DSH adjustment of $1.1 million that Thomasville Medical Center (Thomasville) claimed on its cost report for the fiscal year ending December 31, 2004, $24,000 was excessive because Cahaba calculated the operating DSH adjustment as if the hospital was urban for the entire cost report period. However, Thomasville was rural for the period October 1, 2004, through December 31, 2004. This resulted in an operating DSH overpayment of $24,000.

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