A new report by the Government Accountability Office (GAO) to Congress stated that Medicaid provider payments were hindered by small amount of data and unclear policy. The report studied Medicaid payments to the government and private hospitals in states like New York, California and Illinois.

According to the report, it has been found that the federal agency within the United States Department of Health and Human Services, Centers for Medicare & Medicaid Services, is hampered by limited information on payments and unclear policy.

As per the report, CMS does not gather ownership information and provider-specific payment. It also stated that the agency lacked a policy to find out that whether Medicaid payments to providers are proficient and economical. Some of the report's findings of overpayments were surprising.

In Illinois State, average daily payments for inpatient services were similar for private and government hospital, but the report by GAO stated that it found the number were different in daily payments for both types of hospitals.

As per the report, payments for New York hospitals were higher among government hospitals, but average daily payments varied widely in the state. Average daily payments were about $200 to more $9,000 for local government hospitals, while less than $200 to $3,400 for private hospitals, the report stated.

According to GAO, "Two were local government hospitals alone received payments exceeding their costs by nearly $400 million. Three facilities in Illinois and New York had Medicaid payments that exceed their actual total operating costs, including costs associated with all services provided to all patients they served".

At the end, the report stated that CMS should take appropriate steps to make sure that states report provider-specific payment data.