International Institute of Sleep, Inc., Billed Medicare for Unallowable Sleep Study Services

International Institute of Sleep, Inc. (the Institute), an Independent Diagnostic Testing Facility based in Deerfield Beach, Florida, billed Medicare for polysomnography services that did not meet Medicare billing requirements for all 100 randomly selected beneficiaries with 130 corresponding lines of service, resulting in overpayments of $78,000. These errors occurred primarily because the Institute did not have adequate controls to ensure that it properly documented polysomnography services billed to Medicare. On the basis of our sample results, we estimated that the Institute received overpayments of at least $1 million for the audit period.