The Rundown is your source for news and updates from the Kansas Legislative Division of Post Audit including conversations with staff discussing the findings of performance audits released to the Kansas Legislature.
Examining Distributions from the Health Care Provider Tax [May 2021]
The Legislature created the Health Care Access Improvement Program (HCAIP) in 2004 to increase the state’s Medicaid reimbursement rates for health care providers. KDHE combines hospital tax revenues collected under the HCAIP program with federal matching funds to increase reimbursement rates to both hospitals and non-hospital health care providers. They increase rates through an add-on percentage For hospitals it is a standard percentage. For non-hospital providers, the add-on percentage varies by procedure. Out of 900 procedure codes, the audit showed that 20 procedures generated 74% of total non-hospital Medicaid reimbursements in 2019. The add-on percentages for the procedure codes that generated the most Medicaid reimbursements for non-hospital providers ranged from 4.2% to 110.9%.
Kansas’ Medicaid system has made it difficult for KDHE to adequately monitor and report HCAIP expenditures and revenues. State statute requires HCAIP revenues to be disbursed in a specific way and that the program be state general fund neutral. In 2020, HCAIP did not comply with those two provisions in state law. It is unlikely that KDHE can ensure compliance without changes to the HCAIP program. Finally, the HCAIP fund report we reviewed does not capture all HCAIP assessment revenues and expenditures.
Evaluating County Government Procurement and Contracting Practices [March 2021]
County governments purchase a variety of goods and services in multiple ways. Individuals who participate in the purchasing process should avoid conflicts of interest. For the 11 counties we reviewed, larger counties appeared to have adequate policies...
Evaluating the Kansas Department of Labor’s Response to COVID-19 Unemployment Claims (Part 1) [February 2021]
The Kansas Department of Labor’s fraud detection process was not designed to detect the large-scale, nationwide fraud campaign that occurred during the COVID-19 pandemic. The Regular Unemployment Insurance program is administered by the Kansas...
Kansas Highway Patrol Personnel Actions [November 2020]
Kansas Highway Patrol officials followed state law and regulations when dismissing two majors in July 2020. Most KHP staff are classified employees, but senior management (including majors) are unclassified employees. State law and regulations only...
Evaluating the Department of Agriculture’s Price Verification Inspection Process [November 2020]
The Kansas Department of Agriculture (KDA) conducts price verification inspections to check the accuracy of businesses’ pricing systems across the state. Businesses fail inspections when more than 2% of items inspectors check are mispriced. KDA may...
Evaluating School Districts’ Unencumbered Cash Balances [November 2020]
Districts account for the local, state, and federal money they receive using various funds. A fund can have a cash balance if the district transfers more funding into it than it spends. Districts maintain unencumbered cash balances for several reasons...