New York Downtown Hospital has agreed to pay $13.4 million to settle charges of participation in a massive Medicaid scam, according to a New York Post report.
The hospital and other medical facilities have been accused of illegally “recycling” hundreds of patients through detoxification units and then billing Medicaid for services. Seventeen patients were allegedly admitted six or more times for the same addiction.
Federal and state prosecutors said NY Downtown Hospital’s contractual arrangement with Special Care Hospital Management, a St. Louis-based healthcare firm, violated anti-kickback laws. The hospital paid the firm a monthly fee of $38,500 to direct patients to its detox unit.
Related Articles on Hospital Settlements:
NewYork-Presbyterian to Pay $995k to Settle Medicare Fraud Charges
University of Louisville Physicians Used Medicaid Funds for Personal Bonuses
Indiana’s Gibson General Hospital Settles Allegations of Improper Billing
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