Nonprofit providers face more audits

Not-for-profit healthcare institutions have been undergoing audits from outside entities at a significantly higher rate than their for-profit counterparts, according to a new study by the Health Care Compliance Association (HCCA).

The survey results found 42 percent of not-for-profits had undergone audits from either the U.S. Department of Health & Human Services' Office of Civil Rights, Office of Inspector General, Medicare or Medicaid Recovery Auditors (RAC) or other outside agencies. By comparison, only 25 percent of for-profits experienced such audits.

Moreover, the comparative volume of audits was much higher among not-for-profits, which experienced an average of six audits per calendar year, compared to only under four audits per calendar year among for-profits.

The study authors were unsure why the not-for-profit providers were drawing such scrutiny from auditors.

"The amount of government and healthcare resources devoted to these audits is staggering. And if that was not enough, I would not be surprised if these numbers increased significantly in the next few years," HCCA CEO Roy Snell said Tuesday in a statement.

For more:
- read the survey (registration required)
- here's the HCCA statement

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