Audit of the Louisiana Medicaid Disproportionate Share Hospital Program - Louisiana State University

DEPARTMENT OF HEALTH & HUMAN SERVICES Office of Inspector General Memorandum JUN -6 2001 Date *p%k-%Y~ Michael F. Mangano From Acting Inspector General Subject Audit of the Louisiana Medicaid Disproportionate Share Hospital Program-Louisiana State University Medical Center-Shreveport, Louisiana (A-06-00-00058) To Thomas Scully Administrator Health Care Financing Administration This memorandum is to alert you to the issuance on Friday , June 8 , 2 0 0 1, of our final report entitled, “Audit of the Louisiana Medicaid Disproportionate Share Hospital Program-Louisiana State University Medical Center-Shreveport, Louisiana” for the State fiscal year (SFY) ended June 30, 1998. A copy of the report is attached. The objectives of this audit were to (1) review Louisiana’s disproportionate share hospital (DSH) program and verify that SFY 1998 payments were calculated in accordance with the approved State plan and (2) verify that payments to individual hospitals did not exceed the uncompensated care costs (UCC) as mandated by the Omnibus Budget Reconciliation Act of 1993. Based on our review, we determined the DSH payments for SFY 1998 were calculated in accordance with the State plan. However, we found that DSH payments to individual hospitals exceeded uncompensated costs. The Louisiana State University Medical Center-Shreveport (LSUMCS) needs to submit a revised UCC schedule to the Department of Health and Hospitals (DHH) which ...