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Dr. Powell Hospital Case Study

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We have completed an audit of Dr. Powell’s salary including comparison of paper time sheets to the payroll system and payments related to Psychiatric time.
The first area audited was payroll processing and administration. Dr. Powell undertakes many positions within the organization, including CMO, Hospitalist Director, Hospitalist Physician, ER Physician, and Psychologist. Dr. Powell’s original contract was updated in July 2016, noting that all clinical shifts should be paid at a rate of $130 per hour. An amendment in October 2016 updated the rate for all clinical shifts to $160 per hour. The pay rate for ED physician was updated in July 2016 and again in late October 2016. However, other clinical areas including Psychiatric (hourly) …show more content…

Powell also acts as both the CMO and Hospitalist Director. These duties were paid at the original contract rate of $118.32 per hour. The contract from October 2016 is somewhat ambiguous as to changes to the CMO and Hospitalist Director rates. This resulted in a single pay period where the rate per hour was changed to $160 per hour, instead of $118.32 per hour. Upon further review it was clarified the intent of management was to leave the rate for administrative duties unchanged and extend the new rate only to clinical areas. An overpayment of $2,834.24 occurred for the one pay period when the admin rate was changed to the clinical rate. Call rates of $1,154 for Psychiatric on call and Psychiatric call-in of $350 appear to be unchanged.
A review of our payroll system found that any Psychiatric call time automatically defaulted to the Psychiatric on call rate of $1,154 biweekly. Unfortunately this caused Dr. Powell to be incorrectly paid at the call rate of $1,154 (biweekly), instead of call-in at $350 per occurrence. During this time period, Dr. Powell was overpaid $18,492 as on call time, which should have been call-in. The payroll system has been modified to remove the default for Psychiatric call and the manual time entry process for Psychiatric call time has been revised to improve

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