1. Fall Finance Conference October 26, 2000
Salim M. Alani
Director, University Audit
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2. Office of University Audit
Mission Statement
To provide audit and advisory services to the University Community by assessing risks, analyzing controls, and ensuring that business practices are effective, efficient, and compliant with University and regulatory policies.
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3. Office of University Audit Organizational Chart
Auditor Auditor Auditor
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Auditors will be assigned to different audit teams on project basis.

4. UNIVERSITY AUDIT GOALS
To get away from after the fact audits to a more proactive, pre-emptive auditing model.
Focus our effort on the essence of good management practices versus mechanics.
Assist the institution in building the capacity to absorb change.
Improve and validate performance, underwriting quality in the decision making process and asking questions which fresh eyes can do.
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5. What’s a HIPAA? 1

6. What Is HIPAA?
Health Insurance Portability and Accountability Act of 1996 (Public Law ) aka Kennedy-Kassebaum Act
Deals with issues like
Guarantees health insurance access, portability, and renewal
Tax provisions for medical savings accounts
Cost reductions
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7. Administrative Simplification
Requires
Improved efficiency in healthcare delivery by standardizing electronic data interchange (EDI), and
Protection of confidentiality and security of health data through setting and enforcing standards
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8. Applies To Health plans Health care clearinghouses
Health care providers (who transmit or store information in electronic form)
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9. Costs
DHHS: “rival and perhaps exceed the cost of fixing the Y2K problem”
33 cents of every healthcare dollar spent between now and 2002
Administration: $3.8 billion over 5 years
Insurance industry: up to 10 times that
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10. Purported Benefits Improved cash flow Savings on administrative costs
Improved disease tracking and quality monitoring
Real-time access to eligibility, enrollment and claims status
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11. Justification Cost savings (?) “It’s the law”
Required to meet Medicare conditions of participation and accreditation
Sanctions (per calendar year):
Civil fines up to $25,000 per person per standard
Criminal penalties up to $250,000 per person per standard
Business partners will require it
Patients (customers) will want it
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12. Some Areas Involved Hospitals/Health Systems Medical Schools
Dental Schools
Student Health/Counseling Services
Human Resources
Information Technology
Legal Affairs/General Counsel
University Audit
Compliance
Finance Health System
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13. Hot Audit Area
COMPLIANCE
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16.
Thinking defensively applies to all media: paper, fax machine, computers - especially ..
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17.
Casual attitudes toward allow thoughts off the top of your head to be sent without so much as a spell-check – let alone a meaning-check.
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18.
Treat all communications seriously, like the official records they are. Think before you write. Edit before you send.
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