There is no evidence of fraudulent reporting but there is a myth that has been circulating since last April that hospitals are lying abtout causes of death and miscoding Medicare claims. Hospitals do not receive extra funds when patients die from COVID-19. They are not over-reporting COVID-19 cases. And, they are not making money on treating COVID-19.
The truth is, hospitals and health systems are in their worst financial shape in decades due to the coronavirus. In some cases, the situation is truly dire. An
AHA report estimates total losses for our nation’s hospitals and health systems of least $323 billion in 2020. There is no windfall here.
Further, hospitals and health systems adhere to strict coding guidelines, and use of the COVID-19 code for Medicare claims is reserved for confirmed cases. As of April 15, all Medicare claims must include positive test results for Covid-19 or other proof. Coding inappropriately can result in criminal penalties and exclusion from the Medicare program altogether. In July, the Trump administration initiated a new procedure in which all covid deaths are verified by HHS. In addition Medicare flags all Covid deaths to verify all coding.