WESTERN PA. Butler, Titusville hospitals were overpaid, audit finds

SHARON, Pa. -- Pennsylvania's auditor general said the state overpaid two local hospitals nearly $3 million for medical care they provided to people who couldn't afford to pay.
The money, paid out in June 2002, came from the state's share of the Tobacco Settlement Fund, said Auditor General Robert P. Casey Jr.
This was his first audit of the tobacco funds, and Casey said it showed that Butler Memorial Hospital in Butler County was overpaid $2.1 million and Titusville Area Hospital in Crawford County was overpaid $875,500.
Tobacco settlement money is being used to help hospitals provide medical treatment to patients without insurance who can't afford to pay their bill.
Auditors found that claims filed by the two hospitals already had been paid by Medicare, Medicaid or other third-party providers and didn't meet the charity-care criteria for payment from the tobacco settlement funds, Casey said.
Coding errors
The double billing was the result of coding errors made by the hospitals in claims data they filed with the Pennsylvania Health Care Cost Containment Council, he added.
Butler Memorial returned its entire June 2002 payment of $2.4 million to the state when auditors uncovered the error, but the hospital will be getting $320,000 of that back as an appropriate payment for uncompensated care charges.
Titusville was entitled to only $22,700, Casey said, adding that he has recommended that the hospital return $875,500 of its total $898,200 June 2002 payment.