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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Medicare and Medicaid Need a Priority in the Recovery of Overpayments from Bankrupt Providers," (A-09-90-00141)

May 5, 1992

Complete Text of Report is available in PDF format (378 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report addresses the need to improve the recovery of Medicare and Medicaid overpayments from bankrupt providers. We found that: (1) the current Federal bankruptcy law does not provide Medicare and Medicaid with a priority in the recovery of overpayments from bankrupt providers, (2) neither Medicare nor Medicaid prepared management information reports on receivables written-off as bad debts, and (3) the losses to the Government from these bad debts may be substantial.