Department of Health

Health Care Reform Act Surcharge Collections

The Department of Health assesses health care providers and insurers a total of about $1.9 billion a year to obtain funds that are used to reimburse hospitals for care provided to the indigent, certain health care initiatives, and professional medical education. We examined the Department's controls over these surcharge collections and found that improvements are needed. For example, procedures are needed to provide assurance that all owed payments are in fact collected. When we examined collection practices at six hospitals, we found that the surcharge was underpaid by three of the hospitals. We also determined that the collection process would be more efficient if greater use were made of certain available technologies, such as electronic data interchange and forms processing software.

For a complete copy of Report 99-S-24 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.