5 Recent Settlements and Investigations Involving Hospitals

Here are five recent settlements and investigations involving hospitals.

1. Mayo Clinic accused of fraudulent billing. The Department of Justice has accused the Mayo Clinic, based in Rochester, Minn., of violating the False Claims Act by falsely billing federal healthcare programs, such as Medicare, for lab tests that were never performed.

2. Three Idaho hospitals and two individuals settle False Claims Act lawsuit for $2.4 million. In 2007, a lawsuit under the False Claims Act was filed against Matthew Stevens and Michelle Dahlberg alleging that starting in 2001, the pair and their businesses used unlicensed aids to provide speech therapy services to outpatients of Eastern Idaho Regional Medical Center, Madison Memorial Hospital and Idaho Falls Recovery Center.

3. Detroit Medical Center pays $30 million settlement. DMC will pay $30 million to the government for improper financial relationships it had with physicians. The relationships included lease deals and independent contractor relationships that were not in writing or were not at fair market value.

4. St. Mary's Medical Center settles allegations of improper billing for $3.28 million. The Langhorne, Pa.-based hospital has agreed to pay the United States $3.28 million to resolve claims the hospital improperly billed Medicare for inpatient admissions between Oct. 2001 and Sept. 2007. The hospital voluntarily reported its improper billing to the government.

5. Georgia hospital pays $13.9 million to resolve False Claims Act allegations. John D. Archbold Memorial Hospital in Thomasville, Ga., has paid $13.9 million to settle allegations it violated the False Claims Act by misrepresenting its Medicaid status. The hospital was accused of falsely claiming to the Georgia Medicaid program that it was a public hospital in order to receive higher Medicaid reimbursements. Its status also allowed it to receive enhanced Disproportionate Share Hospital funds.

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