⊕ Auditors: UC nursing home charged residents for Medicaid-covered service

Kindred Nursing and Rehabilitation in Carthage.

CARTHAGE – A Smith County nursing home and rehabilitation center has received a pair of audit findings, including one that claims it inappropriately charged residents for services covered by Medicaid.

The report released this week by the Tennessee Comptroller’s Office says that Kindred Nursing and Rehabilitation, 112 Health Care Drive, Carthage, inappropriately charged 59 Medicaid residents’ trust fund accounts for basic haircuts, a Medicaid-covered service, from Jan. 1, 2011-Oct. 20, 2014. As a result, the residents were incorrectly debited $2,711.

Auditors recommended the facility reimburse the money, and “in the future, provide covered services to all Medicaid residents without charge.”

The second finding deals with improper management of credit balances. Auditors say Kindred failed to ensure that credit balances on accounts of deceased and discharged patients were promptly reported and that corrected claims submitted. An unrefunded credit balance of $73.86, for example, remains on the accounts receivable ledger of one former resident of the facility and is due to the Medicaid program.

Auditors recommend the Smith County facility implement a system to promptly refund credit balances on the accounts of former residents. Additionally, the facility’s management should maintain evidence of attempts to contact the owner of the credit balance. In case the proper owners cannot be located within five years from the date of the last account activity, a report of the abandoned property must be filed with the Tennessee Department of Treasury’s Division of Unclaimed Property

In its response, Kindred management says the two findings have been resolved, and, namely, funds from the haircuts have been reimbursed. As of May 22, auditors say they’ve received evidence that 44 of the 59 affected residents have been repaid.

The audit is part of the facility’s participation in the Tennessee Medicaid Nursing Facility Program. The audit did not cover quality of care or clinical or medical provisions.

The Carthage facility is owned and operated by Kindred Nursing Centers LP, based in Louisville, Ky. During the examination period, the facility maintained 128 licensed nursing facility beds.

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