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Feds want Medicaid refund from Indiana

– A federal audit released Friday recommends that Indiana’s human services agency refund more than $5.8 million in Medicaid funds because Logansport State Hospital did not show it had complied with special conditions for psychiatric hospitals.

The audit did not say whether the hospital actually complied with the special conditions – only that it had failed to demonstrate that it had complied.

“The State agency made these improper claims because it believed that Logansport had met all requirements to be eligible for Medicaid inpatient psychiatric service payments,” the report said.

Marni Lemons, spokeswoman for the state Family and Social Services Administration, said in a statement Friday the agency disagrees with the audit findings and plans to work with federal authorities to reach “a reasonable resolution.”

In a response last fall to a draft of the audit report, Indiana Medicaid Director Pat Casanova argued that Logansport was fully accredited by an organization authorized by the Centers of Medicaid and Medicare Services.