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September 30, 2015

Calais Regional Hospital owes $3.5 million for Medicare and Medicaid overpayments

Calais Regional Hospital owes a $3.5 million repayment to the federal agency that administers the Medicare and Medicaid programs, placing considerable strain on the hospital's budget, the Quoddy Tides reported last week.

The Centers for Medicare & Medicaid Services, the federal agency, said it overpaid the hospital in 2013 and 2014. The $3.5 million is about 10% of the hospital’s annual income, the paper reported. The agency initially requested immediate payback, but agreed to a 36-month repayment plan.

DeeDee Travis, a hospital spokesman, told the paper it’s not unusual for the agency to make overpayments or underpayments, but overpayments are usually not this large. The overpayment the previous year was about $500,000, the paper reported.

Payments by Medicaid and Medicare account for about 65% of the hospital’s business, according to the paper.

In 2014, CRH was one of nine Maine hospitals named to The Leapfrog Group’s annual list of “top rural hospitals,” a recognition given to less than 7% of all eligible hospitals nationwide. The annual award recognizes excellence in hospital safety, quality and use of resources.

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