Feds overpaid U medical center by at least $3.2M

The federal government overpaid University of Minnesota Medical Center by at least $3.2 million between 2012 and 2013, according to a report released Wednesday by the Inspector General for the Department of Health and Human Services.

The feds analyzed 255 inpatient and outpatient claims from the U's medical center and found about half did not fully comply with Medicare billing requirements.

The report recommends that the hospital refund the Medicare contractor $3.2 million in estimated overpayments and strengthen controls to make sure the hospital is compliant.

A spokesperson for Fairview Health Services, which owns the Minneapolis hospital, says it has paid back all claims in question.

Fairview is appealing 23 claims. If the appeals are successful, the hospital will be refunded.

The spokesperson added that the hospital adjusted internal processes to prevent future overpayment.