Press Releases

The Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations related to the income and accounts receivable, and the services billed to the Hospital by the company that manages the Billing and Collections Department.

The five-finding Report reveals that the Department of Health issued two resolutions recognizing a debt of $506,396 to the private company that provided the billing and collection services from October 1, 2011 to January 24, 2012 without having formalized a contract. This situation is contrary to the Law and fosters an environment for fraudulent and illegal claims to be submitted.

As of August 10, 2016, $8.2 million had been paid to the aforementioned collections company for its services, which were formalized by contract on January 25, 2012. The examination of these operations revealed multiple deficiencies in the collection efforts, inadequate controls over the payment plans, and missing or incorrect information in the files of the payment plans. These situations cause the accounts to become delinquent and deprive the Hospital of the necessary economic resources.

In addition, the Department of Health supplied materials to the private company, mostly paper and printer ink, for $66,442, contrary to one of the clauses of the contract which establishes that “All office supplies, including paper and printer ink, as well as photocopiers, shall be the responsibility of the SECOND PARTY.”

The audit also points out the absence of a substitute collector, conflicting functions of one of the auxiliary collectors, and deficiencies with the filing and the area designated to keep the accounts receivable files. The filing area does not have shelves and the files are neither identified nor organized, contrary to the rules for the administration of public documents. (See photos in Appendix 2 of the Report).

The Report covers the period from July 1, 2012 to July 31, 2016.

See Audit Report DA-17-21

To view other published reports, visit our Audit Reports section.