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Internal audits are conducted by internal auditors of the hospital's own organisation, such as quality officers or healthcare professionals from another department than the one being audited to guarantee some level of independent judgement.
Audit of Income of HospitalsBills should be verified with the fees/charges structure. Concession and waiver on account of fees and other charges should be verified. Bills should be verified with cash receipt book, counterfoil of receipts and cash book. Verification of arrears of bills should be done.
Auditors Assess Billing Mistakes The problems fall into four categories: insufficient documentation, no documentation, medically unnecessary treatments and overall incorrect coding. There may be plain old administrative mistakes, such as double billings and payments based on incorrect or outdated fee schedules.
One of the primary tasks of the SMRCs is to conduct nationwide medical review as directed by CMS. SMRCs will evaluate medical records and related documents to determine whether Medicare claims were billed in compliance with coverage, coding, payment and billing guidelines.
The Centers for Medicare and Medicaid's audit program is administered by a recovery audit contractor in each of four regions of the United States.
In the case of physician practices, audits are usually performed by Part B carriers. One of the more common methods used by Medicare to determine that an audit is appropriate is through the identification of billing patterns.
Medicare audits are one of several things that can trigger a larger civil or criminal investigation by federal law enforcement. Usually, auditors con- clude that Medicare has made significant over- paymentsand demand that the audited physician return the money.
Outlier payments and higher-than-average use of procedures are likely the most common audit triggers. Some payors compare comparable practices in the same geographic area to one another to study practitioner utilization rates. Being an outlier in this comparison may trigger an audit.
What Triggers a Medicare Audit? A key factor that often triggers an audit is claiming reimbursement for a higher than usual frequency of services over a period of time compared to other health professionals who provide similar services.