Department of Correctional Services

Arthur Kill Correctional Facility: Controls Over Medical Service Expenditures

Arthur Kill Correctional Facility is a medium security prison located on Staten Island. During the 1997-98 fiscal year, the Facility spent about $2.8 million on medical services for inmates. With the assistance of an organization that performs hospital utilization reviews for the Department of Health, we reviewed about $530,000 in payments for inpatient care provided by a local hospital during this year. We determined that about $148,000 had been overpaid because some of the hospital admissions were not medically necessary, the length of some hospital stays was longer than medically necessary, and some services were billed at incorrect rates. We also determined that security expenses of $138,000 were incurred in connection with the unnecessary admissions and longer-than-necessary stays. In addition, when we reviewed other medical payments, we identified a number of overpayments, underpayments and duplicate payments, and determined that many medical services were not adequately documented. We identified numerous internal control weaknesses that contributed to these operational deficiencies. We recommend that the internal controls be strengthened and the overpayments be recovered, where possible.

For a complete copy of Report 97-S-60 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.