Review of Inpatient Medicare Crossover Bad Debts Claimed at Three Hospitals in California

EXECUTIVE SUMMARY:

The objective of this review was to determine whether bad debts claimed on federal fiscal year 1999 Medicare cost reports at California hospitals, for which Mutual of Omaha was the fiscal intermediary, were for bad debts previously paid as part of a settlement agreement between the Centers for Medicare and Medicaid Services and the California Department of Health Services.  Of the three hospitals reviewed, we found that all three hospitals claimed bad debts totaling $36,814 on their Medicare cost reports that was previously paid as part of the settlement agreement.