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Lack of oversight found in Massachusetts hospital audit

The audit found CHIA did not analyze or report on Massachusetts hospital data and did not assess potential fines.

Jeff Lagasse, Editor

Photo: Reza Estakhrian/Getty Images

The Massachusetts State Auditor has conducted a performance audit of the Center for Health Information and Analysis (CHIA), determining that the agency did not adequately monitor the financial conditions of acute care hospitals in the state.

By not receiving, analyzing or reporting on data related to Massachusetts hospitals and health systems, CHIA "limited its own ability to identify and address concerns regarding hospitals at risk of closing," according to State Auditor Diana DiZoglio.

This, she said, may have prevented policymakers from becoming aware of the issue and taking subsequent action to lessen their impacts.

By way of recommendations, the state auditor suggested CHIA should ensure that acute care hospitals file their financial reporting in full and on time, and fine acute care hospitals and petition the Superior Court when hospitals don't file their financial information by CHIA's deadline.

Also, in its annual Massachusetts Acute Hospital and Health System Financial Performance reports, CHIA should identify hospitals that are at risk of closure or discontinuing essential services, the auditor said.

The audit period ran from July 1, 2021 through June 30, 2023.

WHAT'S THE IMPACT?

Another finding in the audit is that CHIA did not assess potential fines of $1,613,000 for acute care hospitals and health systems that did not file financial reports by the required deadlines. By not doing so, the auditor said, CHIA risks overlooking hospitals and health systems that are at risk of closing.

To address the issue, the audit recommended that CHIA communicate its reporting deadlines to acute care hospitals, send written notices to hospitals that don't comply with reporting deadlines and issue fines to noncompliant hospitals.

The audit also criticized CHIA for not publicizing the availability of the CompareCare website, and didn't include certain required information on the site, including annual cost data. Because of that, the audit found CHIA can't fulfill its obligation to assist consumers with making informed decisions and can't provide accurate healthcare cost estimates.

Fixing that, the auditor said, would require CHIA to promote the CompareCare website, make commercial healthcare data more readily available and include a list of provider services that are available for people with disabilities.

THE LARGER TREND

Another issue with the website, the auditor said, is that it's not fully accessible under the Americans with Disabilities Act, because it's not fully viewable in portrait mode, meaning it may be inaccessible to those utilizing the site on a mounted device with a fixed orientation such as a smartphone mounted to a wheelchair.

The website should be usable and accessible to people of all abilities, and should be compliant with the Americans with Disabilities Act and the Web Accessibility Initiative's Web Content Accessibility Guidelines 2.1, according to the state auditor.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.