Review of Medicaid Credit Balances at Froedert Memorial Lutheran Hospital, Milwaukee, Wisconsin

EXECUTIVE SUMMARY:

The objective of this audit was to determine whether Medicaid credit balances recorded in Froedtert Memorial Lutheran Hospital's accounting records for inpatient and outpatient services represented overpayments reportable to the Medicaid program.  Our review disclosed that Medicaid overpayments of $20,601 were not reported in a timely manner.  During our fieldwork, the Medicaid program recovered $13,776 of the overpayments.  We recommended that Froedtert Memorial Lutheran Hospital:  (1) ensure Medicaid overpayments of $20,601 are recovered by the program; and (2) revise policies and procedures to ensure that existing and future overpayments are identified and reported.  Froedtert concurred with the results of our review and has already initiated corrective actions with regards to the recommendations.  We agree with the corrective actions.