Question

In: Accounting

1) what kinds of discrepancies you would look for in medical records. Fraud has occurred in...

1) what kinds of discrepancies you would look for in medical records. Fraud has occurred in many medical billing cases.

2) As an investigator/auditor, what would you look for to detect any fraud?

Two things that we should keep in mind:

Concealment is generally accomplished by manipulating documentary evidence, such as purchase invoices, sales invoices, credit memos, deposit slips, checks, receiving reports, bills of lading, leases, titles, sales receipts, money orders, cashier's checks, or insurance policies.

From the time documentary evidence is received, its chain of custody must be maintained in order for it to be accepted by the courts. Contesting attorneys will make every attempt to introduce the possibility that the document has been altered or tampered with.

Solutions

Expert Solution

Answer

1.

15 types of medical billing fraud:

  1. Upcoding: Typically submitting a claim for a service more severe than the actual service provided. For example, submitting a claim for a broken ankle, when the patient was only treated for a sprained ankle.
  2. Cloning: Using an EHR system to automatically generate a more detailed patient observation profile by copying from another patient’s file with similar symptoms to appear as if a more thorough examination was done.
  3. Phantom Billing: Billing for services never performed. This also affects healthcare costs in the millions of dollars invested in tracking and prevention.
  4. Inflated Hospital Bills: Gross overcharges for procedures and/or on equipment used on medical bills. For example, $1,500 surgical screws or $500 Tylenol pills.
  5. Service Unbundling or Fragmentation: Billing for multiple procedures separately, that should have been billed together in a bundle in order to forgo the bundled rate and increase profit.
  6. Self-Referrals: When a provider refers themselves or a partner provider to perform a service, usually for a financial incentive.
  7. Repeat Billing: Billing twice for the same procedure, supplies or medications.
  8. Length of Stay: Charges for days not in the provider facility. Most hospitals will charge for the day you arrived, but not for the day you left.
  9. Correct charge for type of room: For example, if you were in a shared room, make sure you’re not being charged for a private one.
  10. Time in OR: Some hospitals charge based on an “average” time needed to perform an operation instead of the actual operation time.
  11. Keystroke Mistake: Entering incorrect codes, resulting in significant overcharges or in some cases an undercharge.
  12. Cancelled Service: Occasionally a medication, procedure or service that was prearranged and then canceled later but is still charged.
  13. No Medical Value: Claims submitted for payment for poor service that resulted in a decline in patient’s health.
  14. Standard of Care: Billing for services in which the provider failed to meet quality standards of care and provide preventative actions to safeguard patient’s health.
  15. Unnecessary Treatment: When a provider performs unnecessary tests in order to bill for them.

2.

In fraud detection process concealment investigation methods comes after theft investigation method. Concealment is generally accomplished by manipulating documentary evidence, for instance manipulating the invoices like purchase invoices, sales invoices, credit memos, deposit slips, checks, receiving reports, bills of lading, leases, titles, sales reports, money orders, cashier check, or insurance policies. Also deleting or modifying records in corporate database is also falls under the electronic fraudulent activities.


Related Solutions

The following is a situation where an error or fraud has occurred. You are to recommend...
The following is a situation where an error or fraud has occurred. You are to recommend one or more internal controls to prevent or detect error or fraud. Duncan Fisher, the employee responsible for processing purchases, started a fictitious company and processed a purchase transaction for that company. The cash disbursements processor processed the check to pay the invoice and the controller signed the check and mailed it to fictitious company.
The following is a situation where an error or fraud has occurred. You are to recommend...
The following is a situation where an error or fraud has occurred. You are to recommend one or more internal controls to prevent or detect error or fraud. c.) When Duncan Fisher established a new vendor in Maintain Vendors he entered the wrong default account for inventory. Every inventory purchase transaction with that vendor was processed using that wrong account.
The following is a situation where an error or fraud has occurred. You are to recommend...
The following is a situation where an error or fraud has occurred. You are to recommend one or more internal controls to prevent or detect error or fraud. a.) Jenny Miller processed a nonexistent purchase transactions payable to herself. She then processed a check to pay for the purchase and forged controller's signature.
what is fraud risk assessment in terms of municipal organisation or entity? What kinds of fraud...
what is fraud risk assessment in terms of municipal organisation or entity? What kinds of fraud risks that are faced by municipal organisations?
fraud auditing and IT auditing. 1-Describe the different kinds of fraud andthe Fraud Triangle, an auditor's...
fraud auditing and IT auditing. 1-Describe the different kinds of fraud andthe Fraud Triangle, an auditor's responsibility to identify and assess fraud. 2-Describe the specific risks, benefits, and internal controls associated with IT functions.
You have been asked to analyze your hospitals medical records to look for reasons behind an...
You have been asked to analyze your hospitals medical records to look for reasons behind an unexplained spike in deaths. summary of how you would approach this problem. Questions you might consider in your approach include: - What specific patient data is available? - What form is the data? Is it structured or unstructured? Is both structured and unstructured data available? - Are different techniques required to mine structured and unstructured data? Do you need to use both? - Overall,...
What is the new medical records system ?? What is the benefit of the electronic records...
What is the new medical records system ?? What is the benefit of the electronic records system in the hospital? And its downsides?
write a few paragraphs about what success as a medical professional would look like
write a few paragraphs about what success as a medical professional would look like
You are a Fraud Investigator and you are asked to look into a small sole proprietorship/S...
You are a Fraud Investigator and you are asked to look into a small sole proprietorship/S Corp company. You discover that the owner routinely takes money out of the till and they are not using GAAP as their accounting basis. 1. What do you do? 2. What accounting basis could they be using instead?
What kinds of stars would you, as an astronomer sometime in the future, monitor if you...
What kinds of stars would you, as an astronomer sometime in the future, monitor if you wished to observe a supernova explosion from its very beginning? Which, if any, of these stars are possible supernova candidates? Explain. Compare your results with at least two of your classmates. Did the spectral-type of the stars they identified differ from yours? Why? Remember that there are two types of supernova, Type IA and Type II. Choose one of these types for this activity....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT