States fail to report health provider sanctions

States routinely fail to notify federal authorities when they've kicked healthcare providers out of their Medicaid programs for incompetence, fraud, and other reasons, government investigators have found. The lack of notice is a violation of federal law, and makes it easier for barred providers to set up shop in other states and to continue getting payments from federal health programs. The inspector general for the Health and Human Services Department maintains the list of healthcare providers prohibited from getting any federal health reimbursements. In 2007, the IG's office added 3,308 people and organizations to that database, but probably could have added many more, according to a survey.