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This is a fairly new program intended to identify fraudulent billing medicare providers. Great, huh? In theory, I agree. The reality is that the auditors have the authority to audit numerous accounts every month from any and all providers. These audits are complex and time consuming for the providers. The audit companies are paid on contingency a percentage of the payments they recover (take back from providers. They auditors request 30 records for audit. They can demand refund on all 30 and sometimes do. The hospital can appeal the decision to take back payment, a very time consuming and complex process. If the hospital immediately refunds the payments, even if they believe they were correctly billed, there is no penalty assessed. If they appeal and win (again after spending money in labor and possible legal fees), the money is returned with no interest or fees. If they keep the money through the appeals process, then loose, interest and penalties begin accruing immediately after the request for refund is denied.
1. This system of paying audit contractors based on money recovered is ripe for fraud and corruption by the auditors, they have nothing to loose by requesting refunds and some hospitals find the appeal process to costly to fight.
2. Hospitals regardless the size, even small rural hospitals, have to have someone on staff to handle these requests.
There are many hospitals considering refusing medicare patients due to these unfair audits..
Yeah, what the hell, let's start not paying those greedy hospitals and doctors....fuck'em..
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