Function, Project, Program, Organization, or Activity:

Assessing the Reliability of Medication Charges to Patients' Accounts

Reason(s) Why Audit Is Needed:

This area has not been audited in several years. The Hospital dispenses at least 720,000 doses of medication annually and spends approximately $7 M to purchase medications. The revenue generated from dispensing medication to both in-patients and outpatients is approximately $23 M. During our previous audit we noted omissions, unexplained credits and unexplained charges on patient bills.

Audit Objectives:

The overall objective is to determine that the Hospital charges patients for medication that was prescribed and consumed. The audit will identify and assess procedures that are in place to insure that patients are charged for medication actually received and that the unit cost and total cost for the medication charges are accurate.

Priority: Low