The Centers for Medicare and Medicaid Services has launched a drive to recover what officials describe as "billions" of dollars in overpayments from the government Medicare program to California hospitals. The California Hospital Association says 20 hospitals in the state received letters from the agency demanding an explanation for suspicious charges. An unknown number received so called "demand letters" ordering them to repay the government within 30 days. According to reports, some Medicare officials believe the agency has overpaid California hospitals by as much as $1 billion to $2 billion a year for the past three years, and it may be as much as $20 billion nationwide. Other officials at the agency argue those numbers may be on the high side. The agency has hired Atlanta-based PRG-Schultz to audit hospitals in the state.
- see this article from the San Francisco Business Times