Oregon
Oregon Secretary of State
Published December 8, 2021

Timely Notification of Inpatient Hospital Stays Could Help Reduce Improper Medicaid Payments

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Overall Conclusion

OHA lacks timely notification of inpatient hospital stays, which results in some claims being paid for services not provided because the Medicaid client was in the hospital; there is significant improper payments and high-risk claims related to in-home services, NEMT, and private duty nursing during inpatient stays; improvement through notifications and controls is needed.

Source Document

Audit Scope

Paid Medicaid claims from January 2017 to February 2020 for recipients who experienced extended in-patient hospital stays. The scope did not include Medicaid claims during the COVID-19 pandemic.

Key Findings Summary

1

OHA lacks timely notification of inpatient hospital stays, leading to payments for services not provided while a Medicaid client is in the hospital.

2

In-home services are not allowable during inpatient hospital stays; testing found $49,875 in improper payments across 42 claims, and we estimate approximately $1.3 million in other in-home service claims that are at high risk of being improper.

3

Testing identified $52,344 in improper payments to providers not associated with the hospital who likely did not provide services, and approximately $1.6 million in additional payments identified as high risk of being improper.

View the Findings tab to see all 5 findings

AI-Assisted

Generated by gpt-5-nano

AI Scope Summary

This audit builds on the objective of ensuring Medicaid claims during extended inpatient stays comply with program policies and suggests future audits to evaluate the effectiveness of automated hospital-admission notifications and cross-system data sharing (EVV, Collective Platform) in reducing improper payments across in-home services, NEMT, and private duty nursing.

AI-Generated Insight

The audit reveals a gap in real-time inpatient stay notification within Oregon's Medicaid processes, enabling improper payments across in-home services, NEMT, and PDN during extended hospital stays. It highlights opportunities for cost-effective automation, EVV implementation, and cross-agency coordination (OHA and ODHS) to prevent payments for unallowable services, with potential savings by tightening MMIS edits and improving hospital-admission notifications.