Review of Graduate Medical Education Costs Claimed By The Baystate Medical center For Fiscal Year Ended September 30, 1999

EXECUTIVE SUMMARY:

This report presents the results of our review of medical education payments claimed by the Baystate Medical Center for the fiscal year (FY) ended September 30,1999.   The objective of our review was to determine the accuracy of resident Full Time Equivalent (FTE) counts used to calculate direct graduate medical education (GME) and indirect medical education (IME) payments.  We found that the Hospital's controls over the proper claiming of resident FTEs were generally adequate with the exception of 6.4 GME FTEs and 5.8 IME FTEs that did not meet Medicare criteria for reimbursement.  The effect of these errors did not reduce the FTE counts below established limits on FTEs allowable to be claimed.  Therefore, there was no adverse financial impact to the Hospital's FY 1999 GME/IME reimbursement.  However, we believe such adjustments should be made and corrective policies be put in place in order to provide accurate historical information used in future years' reimbursements.  We recommended that the Hospital strengthen its procedures to ensure that resident FTE counts are computed in accordance with Medicare regulations.  The Hospital agreed with our findings and recommendation.

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