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States may be profiting from federal funding to private hospitals

August 22, 2016

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Several states may be pocketing federal dollars to run hospitals that have been taken over by private companies, an HHS watchdog warned on Friday.HHS’ Office of Inspector General found that Alabama’s Medicaid agency received more than $5 million over two years to run three hospitals that were actually managed by Infirmary Health, a private not-for-profit system that’s the largest healthcare provider in the state.

The funds, known as certified public expenditures, are federal reimbursements for some Medicaid expenses.

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