The Good, The Bad, The Ugly: Life and Times at Audit Nation

The Good, The Bad, The Ugly: Life and Times at Audit Nation

It’s another day with a few stories to report.

First up, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG) recently fined an inpatient rehabilitation facility (IRF) in Louisiana $1.2 million for inappropriate admissions to their facility. But that is not what was unusual with this case. What stood out to me is that not only was the facility fined, but the rehab physician who reviewed and approved the admissions and provided ongoing care was also fined $575,000.

Now, granted, I have not read every single OIG report, but this is the first time I recall seeing a physician charged with making improper admission decisions. The report does note that the physician reportedly put improper pressure on patients to be admitted, so a penalty seems justified. It should also be noted that this was a whistleblower case, with two staff members of the facility earning a 20-percent reward. This case makes me wonder how the OIG would view a physician who admits inpatients to the hospital knowing that the two-midnight rule was not met, but was encouraged to liberally use inpatient status or to count delays in care as necessary days. Will a utilization review (UR) nurse be the next whistleblower getting a very nice payout?

Moving on, I have talked recently about ED visit downgrades done by payers when their proprietary tools come up with a different visit level than the facility or doctor billed. One such tool is the UnitedHealthcare (UHC) Emergency Department Claim (EDC) analyzer, and we know that UHC sells access to this tool to both payers and hospitals to use. Last week I heard a totally unsubstantiated rumor that the version of the tool they sell to payors is different than that which is sold to hospitals. If your hospital uses this tool to designate your ED facility fees, watch your claims closely. If payers are using the same tool, but still downgrading your visits, then something very nefarious may be going on.

Some of you know that Leapfrog Group released their hospital safety grades a couple of weeks ago. If you did well, I am sure your people are screaming it from the rooftops. But let me tell you about one hospital in Chicago. Roseland Community Hospital was the only hospital in the city to receive a grade of F. But here is the catch. Roseland Community received a B rating from the Lown Institute, which does not just look at a few select measures, but also at each hospital’s social responsibility, community benefit, equity, and inclusivity. Looking at the whole picture can sometimes provide a better measure of a hospital’s true quality of care.

Speaking of community benefit, last week I was in Monument Health Rapid City Hospital in South Dakota. During my talk, we discussed the Centers for Medicare & Medicaid Services (CMS) proposal to make the codes for homelessness a complication or comorbidity (CC) in 2024. Here is the thing, though: it’s easy to report the social determinants, but much harder to address them.

But Monument Health has a social worker, Hailey Twietmeyer, who is all-in on both. She goes out into her community, finds the resources patients may need, and establishes partnerships. You can tell from her passion that she loves what she does.

Every hospital needs a Hailey.

Programming note: Listen to Dr. Ronald Hirsch every Monday as he makes his rounds during Monitor Monday and sponsored by R1-RCM.

Facebook
Twitter
LinkedIn

Ronald Hirsch, MD, FACP, ACPA-C, CHCQM, CHRI

Ronald Hirsch, MD, is vice president of the Regulations and Education Group at R1 Physician Advisory Services. Dr. Hirsch’s career in medicine includes many clinical leadership roles at healthcare organizations ranging from acute-care hospitals and home health agencies to long-term care facilities and group medical practices. In addition to serving as a medical director of case management and medical necessity reviewer throughout his career, Dr. Hirsch has delivered numerous peer lectures on case management best practices and is a published author on the topic. He is a member of the Credentials Council and Government Affairs Committee of the American College of Physician Advisors, on the advisory board of the National Association of Healthcare Revenue Integrity, a member of the American Case Management Association, and a Fellow of the American College of Physicians. Dr. Hirsch is a member of the RACmonitor editorial board and is regular panelist on Monitor Mondays. The opinions expressed are those of the author and do not necessarily reflect the views, policies, or opinions of R1 RCM, Inc. or R1 Physician Advisory Services (R1 PAS).

Related Stories

Lessons Learned: Appealing Audits

The 30th Annual Compliance Institute for the Health Care Compliance Association (HCCA) is scheduled to take place in Orlando next week. If you are there,

Read More

When in Doubt, Ask

Sometimes you want to be contacted by the US Department of Health and Human Services (HHS) Office of Inspector General (OIG).   I realize that

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering Breast Biopsy Billing: Guidance-Driven Coding for Accurate Reimbursement

Breast biopsy procedures may be clinically straightforward but accurately translating them into compliant billing can be anything but. In this focused webcast, Shawn Blackburn, CPC, CPMA, CIC, CRC, CCS-P breaks down how imaging guidance, lesion count, laterality, and payer expectations all impact how these procedures should be reported. Through clear explanations and real-world scenarios, you’ll gain practical insight into aligning clinical workflows with billing requirements, avoiding common pitfalls, and ensuring your documentation supports accurate reimbursement and compliance.

May 21, 2026

Mastering OB GYN Coding Accuracy: Precision Coding for Compliance and Reimbursement

Gain clarity and confidence in OB‑GYN coding with this expert‑led webcast featuring Sherri L. Clayton, RHIT, CSS. You’ll learn how to apply global maternity package rules accurately, select the right CPT codes for procedures and visits, and identify documentation gaps that lead to denials. With practical guidance and real examples, this session helps you strengthen compliance, reduce audit risk, and ensure accurate reimbursement for women’s health services.

May 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover essential coding insights with nationally recognized coding authority Kay Piper, RHIA, CDIP, CCS. Through ICD10monitor’s interactive, on‑demand webcast series, Kay walks you through the AHA’s 2026 ICD‑10‑CM/PCS Quarterly Coding Clinics, translating each update into practical, easy‑to‑apply guidance designed to sharpen precision, ensure compliance, and strengthen day‑to‑day decision‑making. Available shortly after each official release.

April 13, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Fourth Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s fourth quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

December 14, 2026

Trending News

Featured Webcasts

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

BLOOM INTO SAVINGS! Get 25% OFF during our spring sale through March 27. Use code SPRING26 at checkout to claim this offer.

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24