Federal fraud investigators are looking into allegations that North Carolina's Medicaid disproportionate-share program overpaid hospitals by $414 million from 1997 to 2003, according to the Raleigh News and Observer. A 2004 state audit said the program used outdated information in calculating payments, failed to complete cost report settlements and had deficient internal controls. The state's HHS department authorized the state's largest disproportionate-share recipient, Carolinas Medical Center, to run the program, the state audit said. A state official told the News and Observer that investigators are following up on the auditor's report. State and Carolinas officials were not immediately available to comment. -- by Vince Galloro
U.S. reviewing N.C. disproportionate-share payments
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