Politics

Elections 2011: Results    Be heard: Contact legislators    Investigations: Read the blog    Christensen: Read his column

Published Sat, Nov 14, 2009 04:50 AM
Modified Sat, Nov 14, 2009 10:18 AM

Hospitals overbilled state plan, audit finds

Email Print Order Reprint
Share This
Text

tool name

close x
tool goes here
- Staff Writer

Six hospitals owe the state more than $2.5 million as a result of overcharges to the State Health Plan, according to preliminary audit findings the plan released Friday.

Johnston Memorial Hospital owes $229,675, a health plan news release said. Wayne Memorial Hospital in Goldsboro owes the most, at just over $1 million.

The audit may find more overcharges at other hospitals. Health plan officials say that 55 hospitals remain under review for possible overcharges, including the state's psychiatric hospitals inRaleigh, Butner, Morganton and Goldsboro. Thirty hospitals have been found to have properly charged the health plan, which serves roughly 670,000 state employees, teachers and retirees.

The plan began the review in March after learning that some hospitals were not properly notifying the plan of rate increases for outpatient medical services from as far back as 2003. The health plan, which is supported by taxpayers, has negotiated contracts with the hospitals that set rates and required notification if they exceeded agreed-upon levels.

Some hospitals have said they passed the rate change information to the plan's claims processor, Blue Cross and Blue Shield of North Carolina, assuming that the information would then be passed on to the health plan. But plan officials say the company was not required to notify the health plan.

Originally, the audit was looking at 15 hospitals, but the news release Friday indicated that the audit has been expanded to review the roughly 90 hospitals that serve plan members.

Health plan officials said the state Attorney General's Office has sent letters to the six hospitals to seek refunds of overpayments. The other four hospitals are Cape Fear Valley Medical Center, which owes $402,325; Gaston Memorial Hospital, which owes $54,659; N.C. Baptist Hospital in Winston-Salem, which owes $638,585; and Wilson Medical Center, which owes $179,784.

Plan officials say the final audit won't be completed for several months.

dan.kane@newsobserver.com or 919-829-4861

Get the biggest news in your email or cellphone as it's happening. Sign up for breaking news alerts.

Email Print Order Reprint
Share This
Text

tool name

close x
tool goes here
More Politics

Get politics updates

Keep up with the latest political stories with our free daily e-mail newsletter, delivered straight to your inbox!

- it's free!

Hot Deals View All
Find a Car
Go
Top Jobs View All

Find a Job
Go
Featured Homes View All
Find a Home
Go

Print Ads

 
We welcome your comments on this story, but please be civil. Do not use profanity, hate speech, threats, personal abuse, images, internet links or any device to draw undue attention. Read our full comment policy.