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From the public record · not a Soft Home Global client

Emergency department E/M services not in the record: what OIG found at Edward W. Sparrow Hospital

Not unless an evaluation and management service was actually provided and documented. At Edward W. Sparrow Hospital, OIG found E/M services billed on emergency visits where three patients came in for dialysis and no other condition was treated or discussed, and a fourth was billed two E/M services when the record supported one. The hospital complied on 91 of the 100 claims reviewed.

This is a summary of a published audit by the HHS Office of Inspector General. Edward W. Sparrow Hospital is not a client of Soft Home Global, and Soft Home Global had no part in the audit. Every figure is quoted from the report, which is linked below — read it rather than rely on this page. Where Edward W. Sparrow Hospital disputed a finding, that is shown too: these are audit findings, not a court’s verdict.

The audit

Organization
Edward W. Sparrow Hospital, Lansing, Michigan
Type
Acute-care nonprofit hospital (525 beds)
Report
OIG A-05-18-00045, issued 12 November 2020
Period audited
1 January 2016 to 31 December 2017
Sample
100 claims reviewed; 91 complied, 9 did not fully comply
Overpayments in the sample
$47,317
Estimated for the whole period
At least $550,917 for the audit period

What went wrong, claim type by claim type

E/M services not substantiated by the record

4 of 20 outpatient claims · $853

Three patients presented to the emergency room for dialysis and no other conditions were treated or discussed, yet E/M services were billed. One patient presented for dialysis and hand pain and was billed two E/M services when the record supported one.

Why, per the report: OIG: the hospital did not have adequate controls to prevent incorrect billing within the risk areas that contained errors.

Billed as inpatient

5 of 80 inpatient claims · $46,464

Stays did not meet Medicare criteria for inpatient claims.

Why, per the report: Officials believed the claims met Medicare requirements.

How it was to be resolved

OIG recommended that Edward W. Sparrow Hospital:

  1. Exercise reasonable diligence to identify, report and return overpayments under the 60-day rule
  2. Strengthen its controls to ensure full compliance with Medicare requirements

What Edward W. Sparrow Hospital said: The Hospital disagreed with the findings, partially concurred with one of the recommendations, and said it intended to appeal.

What a practice or billing team can take from it

These points are Soft Home Global’s reading of the report, not OIG’s words.

  • A visit for a scheduled procedure is not automatically an E/M visit. The note has to show a separate evaluation, and a separate problem.
  • Two E/M lines need two services in the record. One complaint seen once is one service.
  • A 91% clean sample still produced an estimated $550,917 overpayment once extrapolated. Small error rates are not small when the population is large.

Questions

Can a hospital bill an emergency department E/M service for a patient who came in only for dialysis?

Not unless an evaluation and management service was actually provided and documented. At Edward W. Sparrow Hospital, OIG found E/M services billed on emergency visits where three patients came in for dialysis and no other condition was treated or discussed, and a fourth was billed two E/M services when the record supported one. The hospital complied on 91 of the 100 claims reviewed.

Is Edward W. Sparrow Hospital a Soft Home Global client?

No. This page summarises a public audit report published by the HHS Office of Inspector General (report A-05-18-00045, issued 12 November 2020). Soft Home Global had no involvement with Edward W. Sparrow Hospital or with the audit.

Did Edward W. Sparrow Hospital agree with the findings?

The Hospital disagreed with the findings, partially concurred with one of the recommendations, and said it intended to appeal.

Source

Figures read from the report on 15 September 2026.

Related

Next step

Would your claims pass the same review?

Send a ninety-day denial report and an aged AR summary, with no patient identifiers. Within two working days you get a written summary of which denial reasons are costing you most and what is recoverable.

Or write to ops@softhomeglobal.com