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Becker’s Hospital CFO: OIG: Abbott Northwestern Hospital received $8M in Medicare overpayments

OIG: Abbott Northwestern Hospital received $8M in Medicare overpayments

Abbott Northwestern Hospital in Minneapolis, part of Minneapolis-based Allina Health, failed to comply with Medicare billing requirements for 74 of 162 claims reviewed by HHS’ Office of Inspector General for the audit period of Jan. 1, 2013, through Dec. 31, 2014, according to a recent OIG report.

The billing errors resulted in the hospital receiving $933,991 in overpayments, according to the OIG. Extrapolating from the sample results, the OIG estimated Abbott Northwestern received at least $8.04 million in overpayments from Medicare during the audit period.

Based on its findings, the OIG recommended the hospital refund the Medicare contractor $8.04 million, exercise reasonable diligence to identify and return any additional overpayments outside of the audit period and strengthen controls to ensure full compliance with Medicare requirements.

In written comments, Abbott Northwestern generally disagreed with the OIG’s findings and recommendations.

After reviewing the hospital’s comments, the OIG maintained its findings and recommendations.

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