Florida Governor Orders Random Audits of 100-Plus Hospitals

Florida Gov. Rick Scott is ordering state health officials to audit more than 100 hospitals as part of his ongoing battle with hospitals, which he says are driving up Medicaid costs.

The state had asked hospitals and insurers to prove that their contracts aren’t charging rates higher than 120 percent of the Medicaid rate. But Scott said roughly 130 hospitals didn’t comply and would be audited. The Republican governor also said in a statement August 24 that all hospitals would be randomly audited.

Scott is locked in intense negotiations with insurers that could undermine the fledgling Medicaid managed care program. Insurers want a raise, saying they’re not making enough, but Scott doesn’t want to put any more state dollars into the program.

Lawmakers already gave hospitals $400 million this year to bump up Medicaid reimbursement rates.

The Florida Hospital Association says it’s reviewing the letter.