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HMA repays $31M in improperly received government incentives

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Hospital operator Health Management Associates, parent company of Knoxville-based Tennova Healthcare, said this week it is repaying $31 million in federal and state incentive payments that it should not have received.
The company said it is restating financial reports for the last three years and withdrew its previously issued earnings guidance for 2013.
The restated earnings reports are not expected to effect the proposed sale of HMA to Community Health Systems Inc., HMA said in a news release.
Franklin, Tenn.-based CHS has proposed to buy HMA for $7.4 billion in cash and assumption of debt. Both companies expect the sale to close in early 2014, HMA said.
Naples, Fla.-based HMA said it incorrectly applied the “meaningful use” standard in applying for Medicare and Medicaid incentive payments given to hospitals of their use of electronic health records. Eleven of its 71 hospitals received the payments.
HMA said it has repaid some of the incentive payments and it “is in process of repaying the balance of the funds to the relevant state programs,” according to a news release.
The $31 million in incentives were incorrectly recognized as income between July 1, 2011 and June 30, 2013, which required the company to restate its financial reports for 2010, 2011 and 2012 and the first two quarters of 2013.
The company said error was caused by “a material weakness in internal control relating to the administration and oversight of its EHR (electronic health records) enrollment process.” The problem is being corrected, HMA said.

TVA makes Site Selection’s best utilities list

The Tennessee Valley Authority has again been named to Site Selection magazine’s annual list of the top utilities in economic development.TVA-BELLEFONTE(2).JPG

TVA is one of ten power companies on the 2012 list. Another ten companies received honorable mention.

The magazine credits Knoxville-based TVA for helping “garner $4.9 billion and 43,000 jobs for its region last year.”

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