Medicare Compliance Review of North Kansas City Hospital for Calendar Years 2009 and 2010

North Kansas City Hospital (the Hospital), located in North Kansas City, Missouri, complied with Medicare billing requirements for each of the 15 inpatient transfers claims that we reviewed. However, the Hospital did not fully comply with Medicare billing requirements for 35 of the 38 inpatient and outpatient claims with manufacturer credits for replaced medical devices, resulting in overpayments totaling $251,000 for calendar years 2009 and 2010. Overpayments occurred primarily because the Hospital did not have adequate controls to prevent incorrect billing of Medicare claims with manufacturer credits for replaced medical devices.