The Massachusetts Medicaid program made incorrect Meaningful Use incentive payments to 19 hospitals totaling $3.3 million, according to the Department of Health and Human Services Office of Inspector General (OIG).

Medicaid made both overpayments and underpayments, for a net overpayment of $2.1 million. The agency overpaid 13 hospitals a total of $2.7 million and underpaid six hospitals a total of $564,000. The state agency also did not report two hospital incentive payments to the National Level Repository (NLR).

OIG investigated the state's incentive payments because the state agency paid out $45.8 million to 25 hospitals which is 71 percent of all payments made during 2011 and 2012.

OIG recommended that the Massachusetts agency refund to the federal government $2.1 million in net overpayments made to the 19 hospitals; adjust the 19 hospitals' remaining incentive payments to account for the incorrect calculations, which will result in future cost savings of $1.7 million; review the calculations for other hospitals not reviewed to determine whether payment adjustments are needed, review supporting documentation for the numbers provided in the cost reports, and refund any overpayments identified.

Read the OIG report.