The Los Angeles City Comptroller's Office recently revealed the findings of an accounts payable audit that it conducted for the company responsible for the city's workers health procedures claims.
According to the Los Angeles Daily News, the audit found that Tristar Risk Management made duplicate payments totaling $225,000 to various care providers, including the Casa Colina Center for Rehabilitation. Tristar handles all of Los Angeles' workers claims for compensation, and the overpayments were made to various medical facilities. When the error was brought to the attention of Tristar, the organization immediately began efforts to pay the city back, says the news source.
"At a time when the city is strapped for cash, we need to make sure we have appropriate oversight of all our programs," said City Comptroller Wendy Greuel. "It is unacceptable that the city is losing hundreds of thousands of dollars to what amounts as incompetence."
The office's report included suggestions that the city and Tristar should follow in order to avoid a similar situation in the future. Greuel recommends there be more oversight on Tristar's claim processing system and final payment approvals in order to ensure policies are being followed correctly. Additionally, the city plans to seek reimbursement from four other medical facilities which were given duplicate payments.