The Arkansas Department of Human Services made incorrect Medicaid electronic health record incentive payments to 14 hospitals, according to an audit by the Department of Health and Human Services Office of Inspector General.

The faulty payments by Arkansas to 13 hospitals totaled $1.2 million over nearly two years and included both overpayments and underpayments, for a net overpayment of $79,428.

“We were unable to determine what portion of the incentive payment to one hospital was incorrect and set aside the entire payment of $1.5 million for the state agency to work with the hospital to determine the correct incentive payment,” states the OIG report.

Also See: HHS OIG to Study Meaningful Use Payments and EHR Security

The Arkansas Department of Human Services did not always pay EHR incentive program payments in accordance with federal and state requirements, concludes the report. OIG notes that the Government Accountability Office has identified improper payments as the primary risk to the EHR incentive programs.

“These programs may be at greater risk of improper payments than other programs because they are new and have complex requirements,” according to the OIG report.

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