HospitalInspections.org

Based on review of facility contracts, review of the accounts payable reports, and interviews, the Governing Body failed to ensure the financial resources were adequate to maintain supplies, equipment, and contracted services for daily operations of the facility.

Refer to A-0083 and A-0582.

Based on review of facility contracts, review of accounts payable (AP) reports, and interviews, the facility failed to ensure payment for contracted services to ensure the sustainability of the facility for 9 patients (#1, #2, #3, #4, #5, #6, #7, #8, #9) of 9 patients reviewed.

The findings included:

Review of the AP Aging Report dated 9/30/19 revealed the facility owed the contractor for the medication dispensing system $48,415.24.

Telephone interview with the Account Representative from the medication dispensing system vendor on 10/2/19 at 12:00 PM revealed no payment had been received from the facility since 12/2018, and the contracted company made notice on 9/20/19 of a demand payment for $48.000.

Interview with the facility's Accounts Payable Manager on 10/2/19 at 12:05 PM, in the accounts payable department, confirmed the contractor had not been paid since 12/2018 (10 months prior).

Telephone interview the facility's Corporate Treasury Analyst on 10/2/19 at 3:05 PM confirmed the facility had received the final demand for payment from the medication dispensing system contractor, but no payment had been made.

Review of the AP Aging Report dated 9/30/19 for the contracted radiology services revealed the facility owed the radiology company $65,580.00.

Telephone interview with the account representative from the radiology company on 10/2/19 at 11:45 AM confirmed no payment had been made since 12/2018 (10 months prior).

Interview with the facility's Account Payable Manager on 10/2/19 at 12:05 PM, in the account payable office, confirmed the facility owed the radiology contractor $65,580.00 and no payments had been made since 12/2018.

Telephone interview with the Corporate Chief Executive Officer (CEO) on 10/2/19 at 3:05 PM confirmed the contractors had not been paid related to facility cash flow problems.

Based on review of accounts payable (AP) reports and interviews, the facility failed to ensure vendor payment for supplies to ensure the sustainability of the facility for 9 patients (#1, #2, #3, #4, #5, #6, #7, #8, #9) of 9 patients reviewed.

The findings included:

Review of the AP Aging Report dated 9/30/19 revealed the facility owed Laboratory Supply Vendor #1 the amount of $72,396.50.

Interview with the Laboratory Director on 10/2/19 at 9:15 AM, in the conference room, revealed the facility cannot order from Laboratory Supply Vendor #1 because of the account balance.

Telephone interview with the Sales Representative at Laboratory Vendor #1 on 10/2/19 at 4:40 PM revealed the facility's account was on hold because the vendor had not been paid by the facility.

Interview with the facility's Accounts Receivable Manager on 10/3/19 at 9:45 AM, in the accounts payable office, confirmed the facility was supposed to make a monthly payment of $8440.00 to Laboratory Supply Vendor #1, but the payments had not been made since April 2019. (6 months prior).

Review of the AP Aging Report dated 9/30/19 revealed the facility owed Laboratory Supply Vendor #2 the amount of $37,059.73.

Interview with the facility's Accounts Receivable Manager on 10/3/19 at 9:15 AM, in the accounts payable office, confirmed the facility owed Laboratory Supply Vendor #2 $37,059.73 and no payments had been since April 2019 (6 months prior).

Telephone interview with the Corporate Chief Executive Officer (CEO) on 10/2/19 at 3:05 PM confirmed some vendors now required cash on delivery or prepayment before supplies would be shipped. Further interview confirmed some vendors had not been paid related to facility cash flow problems.