Case Studies

Case Study: Medicare Underpayment Identification and Revenue Recovery

hc audit

Proactive Underpayment Audit Uncovers Revenue

Learn how an underpayment audit for an academic medical center uncovered $5 million in missed reimbursement, while also identifying workflow and system gaps and providing long-term value.

Download the Case Study

The Client

An academic medical center operating multiple hospitals and specialized service lines.

The Situation

Following a recent conversion to a new electronic health record (EHR) platform (EPIC), the health system engaged Withum to perform a comprehensive Medicare underpayment audit to validate the accuracy and completeness of prior reimbursement.

Given the complexity of Medicare reimbursement methodologies, leadership sought an independent assessment to ensure that billing workflows, charge capture, and payment outcomes were functioning as intended.

The Challenge

Medicare reimburses hospitals for certain drugs and medical devices through add-on payments that are separate from the standard DRG reimbursement. These payments are dependent on accurate coding, billing, and charge capture processes.

Although no specific issue had been previously identified, the post-EPIC environment introduced potential risk areas, including:

Since these cases represent a small population of accounts with significant financial impact, discrepancies can remain undetected without a targeted, data-driven analysis.

The Approach and Solution

Withum conducted a targeted and comprehensive Medicare underpayment review that included:

Withum’s team collaborated with revenue cycle, revenue integrity, HIM and IT stakeholders to validate findings and isolate breakdowns within the end-to-end billing process.

The Results, ROI

Sustainable Impact

Beyond the retrospective recovery opportunity, this engagement delivered long-term value through:

Key Takeaway

Even in the absence of known issues, proactive Medicare underpayment audits can uncover significant hidden revenue. High-cost, low-volume medical services require precise alignment across clinical and revenue cycle functions to ensure accurate reimbursement and reduce long-term compliance and financial risk.

Related Insights

Read more
Doctor interacting with a futuristic digital interface displaying medical data and analytics in a high-tech healthcare environment
What Healthcare IT Leaders Should Know About Migrating from Tableau to Power BI 

Healthcare IT teams don’t have the luxury of lengthy, speculative technology projects. When you’re balancing clinical operations, regulatory compliance and a long list of competing priorities, a healthcare business intelligence (BI) migration that drags on for a year simply isn’t realistic, even if the outcome would be worth it.  That’s why the conversation about moving from Tableau to Power BI has stalled…

Read more
Busy hospital corridor with diverse doctors in motion suitable for medical and healthcare services
Proposed New IRS Reporting Requirements for Nonprofit Hospitals

A Congressional discussion draft released May 12, 2026, would significantly expand the information that tax-exempt hospitals must report annually on their Form 990. The draft amends Section 6033 of the Internal Revenue Code by adding a new subsection (p) and would apply to every organization described in IRS Code Section 501(r)(2) that is required to…

Read more
Innovative research in healthcare with advanced digital technology showcasing a global perspective
Audits, Fines and Ransomware: The High Cost of ‘Good Enough’ IT in Healthcare

Healthcare organizations operate in a complex environment; stakes are high and there is no margin for error. Cybersecurity in healthcare is no longer just an IT concern – it directly impacts patient safety, regulatory compliance, and day-to-day operations. Protecting sensitive patient data, ensuring regulatory compliance, and supporting continuous care have never been more important.   When organizations settle for “good enough” IT solutions (systems and support/delivery) that merely meet minimum standards, they open…

Want to Know More?

For more information, please contact a member of our team.

Contact us