OIG eyes high severity inpatient claims with short lengths of stay

June 22nd, 2021

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article discusses an Office of Inspector General review of inpatient hospital claims, with attention to billing patterns associated with higher-acuity stays and shorter lengths of stay. It explains why the findings matter for hospitals, compliance teams, coders, auditors, and revenue integrity staff, and it places the review in the context of prior CMS and OIG audit activity. The article also covers broader oversight themes such as risk-based auditing, monitoring vendor coding, and strengthening inpatient coding quality processes.

Why This Topic Matters

Hospitals and coding teams need to understand how audit agencies are identifying potentially vulnerable inpatient billing patterns and what internal controls may reduce compliance risk. The article is relevant to organizations that manage Medicare inpatient claims, coding audits, and documentation oversight.

Article Sections

  1. OIG findings and CMS audit context

    Summarizes recent OIG observations about inpatient billing patterns and describes how they fit into broader CMS and OIG review activity. The section also situates the topic within prior audits and work plan activity.

  2. How the OIG reviewed inpatient severity levels

    Describes the general approach used to group inpatient claims by severity level and analyze billing patterns across MS-DRGs. It also notes the sample focus and the broad categories evaluated.

  3. Implications for hospitals and compliance programs

    Explains the operational and compliance implications for hospitals, including auditing oversight, risk-based review planning, and the role of coding quality controls. The section addresses internal monitoring concerns and the importance of coordination among coding, audit, and compliance functions.

What You Will Learn

  • How OIG and CMS review inpatient billing patterns
  • Why severity-level trends in inpatient claims attract audit attention
  • How hospitals can think about audit targeting and oversight
  • What general compliance areas are relevant to inpatient coding reviews

Who Should Read This

  • Hospital compliance officers
  • Inpatient coders
  • Revenue integrity teams
  • Health information management professionals
  • Audit and compliance consultants
  • Hospital administrators

Codes Discussed

  • MS-DRG: 190
  • MS-DRG: 193
  • MS-DRG: 194
  • MS-DRG: 195
  • MS-DRG: 291
  • MS-DRG: 292
  • MS-DRG: 682
  • MS-DRG: 689
  • MS-DRG: 871

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