A federal audit recommends that Indiana's human services agency refund more than $5.8 million in Medicaid funds because a state hospital failed to "demonstrate compliance" with special conditions for psychiatric hospitals.
The audit released Friday by the Inspector General of the Department of Health and Human Services says Logansport State Hospital failed to demonstrate it met staffing and medical record requirements from 2008 through the end of 2010.
Auditors recommended the Family and Social Services Administration refund $5.84 million for the federal share of the payments under Medicaid.
It's unclear whether Indiana will need to make the refunds. A message seeking comment was left Friday with the FSSA.
The hospital about 70 miles north of Indianapolis has 170 beds in two units that treat mentally ill criminals and other individuals.