In an effort to cut back on excessive spending, fraud and waste, the Pennsylvania Department of Public Welfare has ordered many of the state’s nursing homes to undergo recovery audits for their Medicaid programs to pinpoint areas of misappropriation and determine how much money needs to be recollected.
According to The Philadelphia Inquirer, there have been a total of 75 nursing homes that are being investigated. Executives and employees at these healthcare facilities are not concerned about the Medicaid recovery audits, but are instead worried about the time-consuming process of preparing the large amount of documents that are required. The Department of Public Welfare is hoping to identify instances of improper billing and work to recover the funds for the state, as it pays money into the program for Pennsylvania’s elder citizens within the facilities.
The news source notes that the nursing homes undergoing the audits brought in a total of $600 million in Medicaid revenue in 2011. In addition, over the past four years, the facilities have seen around $2 billion come in from Medicaid, all of which will be looked at during the recovery audit.
Business in every industry can use recovery audits to uncover any areas of financial misappropriation and take steps to recover any misused funds.