Revenue from OIG audits expected to drop by almost $1 billion

Revenues from Department of Health and Human Services Office of Inspector General audits and investigations department for the first half of fiscal 2014 are expected to drop almost $1 billion from the same period last year.

In its semiannual report to Congress released on Tuesday, the agency said it expects its recoveries for the first half of the year will total $3.1 billion, of which $2.8 billion will come from investigations and the rest from audits. The OIG recovered about $4 billion the first half of fiscal 2013.

The OIG announced earlier this spring that it planned to curtail its Medicare oversight activities by more than 20% this year because of funding cutbacks. Also, earlier this year, the Centers for Medicare & Medicaid Services announced a suspension of recovery audit contractor activity, pending new contracts.

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