FAQ
FAQ
Providing Visibility
Have questions about SpendMend or our process? Below we address commonly asked questions to provide transparency of our business and shed light on how we help organizations, like yours, shrink and manage Financial Leakage.

Medical Device Tracking FAQ
What departments are involved in the explant warranty credit process?
Cath Lab, Surgery, Supply Chain, Compliance, Finance, Revenue Cycle.
Which department typically owns this process?
This varies but typically it is compliance.
If our hospital has a process can you help us evaluate how it is working?
Yes, we can do an OIG Mock Audit to see how well you are complying to CMS Rules.
What does a Mock Audit entail and how long does it take?
The Mock Audit focuses on Cardiac Rhythmic Devices and takes
3-5 months. Hospitals send a Letter of Authorization to their manufacturers which allows SpendMend access to their credit history. Credits are evaluated to identify if they are over 50% of the original device cost, and confirms economic benefit is received by the hospital. UB04 forms are then returned to CMS.
If my hospital is not compliant is there a financial risk to my hospital for not reporting these warranty credits?
Yes, there are per instance fines ($11K-$22K). And if the hospital has not reported the overpayment within 60 days of receipt, they must repay 3x’s.
Is it better to wait for the OIG to audit us to address this?
No, if your hospital self-reports and puts a repeatable process in place you are less likely to be fined.
What is the SpendMend management service?
This is a combination of tracking software and service that provides a repeatable process to assure compliance with CMS.
How are manufacturers involved in the management services?
SpendMend works directly with manufacturers on your behalf. Manufacturers are an integral part of a hospital’s compliance process. The solution will make sure every explant eligible for a warranty is returned for assessment. All credits are housed in the system and every credit is analyzed to see if repayment to CMS is needed. Denied credits are also reviewed and will be contested if we determine the finding is erroneous.
How long does it take to get the management services to go-live?
Most hospitals can be live within 30-60 days of contract signing.
Does the tracking program require integration with my current EHR and ERP software solutions?
No, SpendMend uses OCR technology to reduce manual data entry.
Is the system hard to use?
No, it takes 30 minutes to train a new user.
Should I do a Mock Audit before starting the management service?
No. Best practice is to begin the management service immediately after contract signing. The mock audit review will run concurrently for 3-5 months. SpendMend will ensure your processes are compliant with CMS while performing the mock audit to assess past risk.
Have questions or want to schedule a meeting?
Call us 616.729.0255