Health Management Associates Inc. is repaying $31 million in technology incentives it improperly collected through federal and state programs and will tighten its financial controls as it restates financial results dating back to 2010, reported.
HMA disclosed that 11 of its hospitals collected the $31 million through the Medicare and Medicaid Health Information Technology program, but they made an error in applying the requirements of the program. The program is intended to encourage health care providers to upgrade their electronic records systems.
HMA did not name the hospitals involved and did not return calls seeking additional information on Wednesday.
In written press release, HMA said it has notified the Centers for Medicare and Medicaid Services and has repaid “the majority of the funds” and is still working to pay back some state agencies that participate in the programs.
HMA operates 71 hospitals in 15 states, including Lehigh Regional Medical Center in Lehigh Acres; two Physicians Regional Healthcare System hospitals in the Naples area; Bayfront Health in Port Charlotte; and Bayfront Health in Punta Gorda.
On July 30, 2013, Community Health Systems Inc. announced it intended to buy HMA for cash and stock valued at about $13.78 a share or about $7.6 billion, including $3.7 billion in debt. That deal is expected to close in the first quarter, HMA said in its statement.