Office of Inspector General Partnership with the State of ...

DEPARTMENT

OF HEALTH

& HUMAN

SERVICES

Office of Inspector

General

Memorandum

*hlrT 7.. I; r?rT

Date

June Gibbs Brown

Inspector Gener

P

Office of Inspector General Partnership with the State of Ohio, Office of the Auditor��s

Report on Review of Medicaid Provider Reimbursements made to Crest Transportation

Service (A-05-00-00091)

From

Subject

To

Michael Hash

Acting Administrator

Health Care Financing Administration

This memorandum transmits the final audit report entitled, Review of Medicaid Provider

Reimbursements made to Crest Transportation Service, prepared by the State of Ohio��s

Office of the Auditor (State Auditor) covering inappropriate Medicaid payments made

during the period January 1, 1996 through March 3 1,200O. The objective of the audit was

to determine whether the provider��s claims for Medicaid reimbursement of transportation

services were in compliance with regulations and, if not, to calculate the overpayment

resulting from non-compliance.

The State Auditor provided the report to us in connection with our coordination of the

Office of Inspector General��s (OIG) partnership efforts with the State agencies having

oversight responsibilities for the Medicaid program. The State Auditor developed the issue,

performed the audit, and provided their results for our distribution and Departmental

recovery action. The information contained in the report is provided to alert the Health Care

Financing Administration (HCFA) of a Medicaid overpayment issue in Ohio.

The State Auditor reported that the provider, Crest Transportation Service, was unable to

provide the documentation requested on any of the 135 transportation services randomly

selected from the ��population of 66,8 11 transportation services billed during the audit period.

Because of the lack of documentation--no support that trips occurred, missing physicians��

certifications to support the medical necessity of any trips, and other evidence--the State

Auditor questioned $1,001,675 million (Federal share approximately $590,000) in provider

reimbursements during the audit period.

The State Auditor recommended that the Ohio Department of Human Services (ODHS):

.

Determine whether the overpayments constitute fraud and abuse in accordance with

section 5 101:3-l-29 of the Ohio Administrative Code and initiate proceedings to

recoup all or part of the identified overpayments, and

.

Consider termination of the urovider��s Medicaid ameement.

Page 2 - Michael Hash

The provider generally disagreed with the findings of the report but did not provide

additional documentation to support the claims for reimbursement. As with all audit reports

developed by non-federal auditors, we are providing an attachment, listing the coded

recommendations for HCFA to use to resolve the findings and recommendations. In this

regard, we have performed sufficient work to satisfy ourselves that the attached audit report

can be relied upon and used by HCFA in meeting its program oversight responsibilities.

We were advised by ODHS Surveillance and Utilization Review Section that the case has

been referred to the Ohio Medicaid Fraud Control Unit for legal action. In addition, we

were told that ODHS stopped all payments to the provider and terminated the Medicaid

agreement. The official also said that because of bank liens on all of the provider��s assets,

any monetary recovery was unlikely.

We plan to share this report with other State Medicaid agencies in an effort to encourage

their participation in the OIG��s partnership efforts. If you have any questions about the

review, please contact me or have your staff contact George M. Reeb, Assistant Inspector

General for Health Care Financing Audits, at (410) 786-7104.

Attachment

Attachment

CM A-05-00-0009 1

Summary of Recommendations

Recommendation

Codes

E!ageAmQuIlt

Resolution

43=&L

20400903

7

$1 million

HHS/HCFA

ODHS should initiate

proceedings to recoup all or part

of the identified overpayment

and, as recovered, make

adjustments for the Federal

share on its Quarterly Report of

Federal Expenditures to HCFA.

30792111

7

N/A

HHS/HCFA

ODHS should determine

whether the provider��s Medicaid

agreement should be terminated.

he

STATE or OHIO

OFFICE OF THE AUDITOR

0 hio Medicaid Program

Review of Medicaid Provider Reimbursements made to

Crest Transportation Service

A Compliance Reviertl bv the

Fraud, Waste and Abuse

Prevention Division

:Jurw

2000

.-1OS/FH:-IP-00-036C

STATE OF OHIO

OFFICE OF THE AUDITOR

Jmt PETW,

AUDITOR

OF STATE

8s East Bl-oad Street

P.O. Box 1140

Columbus, Ohlo 432 16- 1140

Telephone

614-466-4514

800-282-0370

Facsimile

6 14-466-4490

auditor.state.oh.us

Ms. Jacqueline Romer-Sensky, Director

Ohio Department of Human Services

30 East Broad Street, 32��d Floor

Columbus. Ohio 43266-0423

Dear Director Romer-Sensky:

We have completed our review of selected medical services rendered to Medicaid recipients by Crest

Transportation Services, Inc. (Medicaid Provider#0207798 ), for the period January 1,1996 to March

3 1, 2000. We identified $1,001,694.70 in overpayments, which resulted from Medicaid claims

submitted by the Provider for services that did not meet reimbursement rules under the Ohio

Medicaid Transportation Manual and the Ohio Administrative Code.

We are sending this report to you because we believe the circumstances meet the criteria for fraud

and abuse as defined in Section 5 101:3-l-29 of the Ohio Administrative Code. Our preliminary

results prompted the Department��s Surveillance and Utilization Review Section to suspend future

Medicaid payments to the Provider. In addition, we found that the owner of Crest Transportation

Services, Inc. is also a Medicaid recipient and has received almost $590,000 in Medicaid benefits

over the last 7 years.�� Therefore, we are recommending follow up actions for the Department��s

consideration.

Copies of this report are also being sent the Attorney General��s Health Care Fraud Section. If you

have any questions, please contact Johnnie L. Butts, Jr., Chief of the Fraud, Waste and Abuse

Prevention Division at (6 14) 466-32 12.

Yours truly,

JIM PETRO

Auditor of State

June 29.2000

Enclosure

June

2000

.-IOS/FII;1P-00-036C

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