Eli's Rehab Report

News Briefs:

Miami Rehab Agency Goes Up In Smoke After OIG Audit

So much for fixing mistakes after an audit. After Ultimate Rehabilitation Agency Inc. got a visit from the HHS Office of Inspector General, the company quietly ceased operations.

In report number A-04-05-02009, the OIG estimated that Ultimate's comprehensive outpatient rehabilitation facility therapy services were $1.4 million overpaid in calendar year 2003. Ultimate received roughly $2.5 million for 4,838 PT and OT claims that year.

A random sample of 100 claims revealed that 98 claims for 1,400 services totaling $32,227 did not meet Medicare reimbursement requirements, the OIG reported. But documentation and medical necessity were the least of this CORF's problems. In its sampling, the OIG found 1,189 services did not meet requirements for reporting service units.

A mere 151 services did not meet documentation requirements, and 60 services were deemed not medically necessary.

The OIG recommended that Ultimate refund the Medicare program $1,400,062, but it didn't get the response it was expecting. Ultimate closed operations in 2006, and an authorized representative of the former company said Ultimate would not be contesting or responding to the report because of its non-existence, the OIG report said.

Note: To read the full audit, published Sept. 18, see www.oig.hhs.gov/oas/reports/region4/40502009.pdf