Audit of the Health Policy Commission

This is a state performance audit of the Massachusetts Health Policy Commission, covering July 1, 2019 through March 31, 2021.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2019 through March 31, 2021.”

The audit looked at whether HPC followed state rules when managing approved SHIFT Care Program grant contracts funded through the Distressed Hospital Trust Fund.

“The purpose of this audit was to determine whether HPC1 administered its Sustainable Healthcare Innovations Fostering Transformation (SHIFT) Care Program–approved grant contracts in accordance with Sections 2GGGG(d), (e), (f), and (i) of Chapter 29 of the General Laws and Section 5 of Title 958 of the Code of Massachusetts Regulations.”

The program involved public oversight of millions of dollars meant to support certain nonprofit community hospitals and improve care access.

“Funding for the SHIFT Care Program is provided by the Distressed Hospital Trust Fund (DHTF), which was established by Section 2GGGG(a) of Chapter 29 of the General Laws to provide approved grant contracts to certain nonprofit community hospitals.”

For residents, the program was aimed at making healthcare more affordable, more accountable, and more equitable in Massachusetts.

“According to HPC’s website, its mission is “to advance a more transparent, accountable, and equitable health care system through its independent policy leadership and innovative investment programs,” and its goal is to improve healthcare and make it more affordable for all residents of the Commonwealth.”

The auditor concluded that HPC met the audit objectives: it properly administered the fund and made reimbursements according to the cited laws and regulations.

“Our audit revealed no significant instances of noncompliance that must be reported under generally accepted government auditing standards.”

The report says HPC planned to release final SHIFT Care Program results in summer 2022.

“HPC will release the final results of the SHIFT Care Program in summer 2022.”

This matters because the audit covered a real funding stream with large balances and checked whether payments, eligibility, grant contracts, spending limits, and progress reviews were handled properly.

“During our audit period, the DHTF had ending balances of $10,231,155 for fiscal year 2020 and $7,329,620 for fiscal year 2021.”

SHIFT Care Program means a grant program run by HPC to fund qualified acute care hospitals, especially for projects addressing social needs and behavioral health access.

“Through the SHIFT Care Program, HPC plans to invest $10 million in approved grant contracts to qualified acute care hospitals2 throughout Massachusetts.”