McKnight’s website has an article about Medicare overpayments (i.e. fraud) to nursing homes and estimate that the amount could be $130 million. Where did all the money go?
The federal investigation into these overpayments state that the Medicare program might have paid too much for hospital and laboratory services including double payments for services. As a result of its findings, OIG recommended (not ordered) that the Centers for Medicare & Medicaid Services instruct payment contractors to "re-examine" records for overpayments and then move to recover them where appropriate. It also suggested CMS test and refine payment system protocols designed to identify such overpayments.
The full audit report is available at http://www.oig.hhs.gov/oas/reports/region1/10600503.pdf.