Obama targets Medicare, Medicaid waste

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McKnight's Video: In tough times, stay optimistic, former AAHSA chair advises
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President Obama on Wednesday instructed the heads of all executive departments and agencies to increase their use of “Payment Recapture Audits” to reduce the amount of improper Medicare, Medicaid and other similar payments.

During the Payment Recapture Audit process, highly skilled accountants will examine payment records to uncover duplicate payments, payments for services not rendered, overpayments, and fictitious vendors, according to a presidential memo. The accounting specialists will be compensated based on their identification of misspent funds. The president expects to save roughly $2 billion over the next three years through this initiative, according to the American Hospital Association.

To expand the use of Payment Recapture Audits, Obama has ordered the director of the Office of Management and Budget to develop guidance for executive departments and agencies within 90 days. The memo is published in the Federal Register.