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Article - June 14, 2008 - Kentucky.com

Audit finds problems at city-owned clinic
FAMILY CARE CENTER OWED $885,000

By Michelle Ku

The Family Care Center's health clinic is plagued by a number of financial accounting problems, according to a recently completed audit of the city-owned medical practice.

Examples cited in the audit include purchasing supplies at the retail rate as opposed to negotiating lower prices; continuing to pay for the services of a doctor who died in April; and having such a high number of unpaid accounts that more than $885,000 is owed to the health clinic.

The audit, conducted by Winchester-based Medical Management Solutions, found questionable accountability for revenues because billing responsibilities take a "back burner to general operations."

Besides financial issues, the audit found a number of management problems and made a number of recommendations such as reorganizing the management structure of the clinic, outsourcing billing and conducting an annual review of vendors to determine the best prices for supplies.

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