Audit of Massachusetts General Hospital Organ Acquisition Costs for the Period October 1, 2000 Through September 30, 2002

EXECUTIVE SUMMARY:

Massachusetts General Hospital did not comply with Medicare law, regulations, and guidelines for claiming organ acquisition costs in the preparation of its Medicare Part A cost report and received excess Medicare reimbursement for organ acquisition activities.  Specifically, the hospital did not have systems in place to accumulate certain costs of organ acquisition separate from the costs of post-transplant and other hospital activities, and reduce laboratory charges and related-party charges to cost on its Medicare cost report.  As a result, the hospital claimed $1,041,718 in unallowable costs, resulting in Medicare overpayments of $489,618, and $2,299,519 in unsupported cost, resulting in Medicare overpayments of $949,296.

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