Incorrect MU payments will cost New Jersey more than $2 million

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New Jersey is the latest state found to have made incorrect Medicaid electronic health record incentive payments to hospitals.

An audit report from the Department of Health and Human Services' Office of Inspector General (OIG) calls for the state to refund the federal government $2,270,213 in net overpayments made to 15 hospitals.

Previous OIG audits found incorrect payments made in Oklahoma, Texas, Arkansas, Arizona, Louisiana and Massachusetts, while Florida, Pennsylvania and the District of Columbia have been paying hospitals properly.

New Jersey made approximately $118 million in Medicaid EHR incentive program payments during the reviewed period, Feb. 1, 2012, to Sept. 30, 2013. OIG auditors reviewed payments to 33 hospitals and the five largest provider groups.

While the provider groups were paid correctly, the state overpaid 10 hospitals $2,407,541 and underpaid five hospitals $137,329. Incorrect payments to two hospitals had been corrected.

Because the money was paid out over three years, payments made after Sept. 30, 2013, also were incorrect, requiring $514,107 in adjustments.

The audit also calls for adjusting the 15 hospitals’ payments to account for the errors and reviewing payments to hospitals not part of the audit.

OIG directed the state to work with Centers for Medicare & Medicaid Services to add one professional payment not reported to the electronic system.