13-hospital Louisiana health system settles false claims allegations

Shreveport, La.-based Allegiance Health Management, a 13-hospital post-acute health system, agreed to a $1.7 million settlement to resolve False Claims Act allegations.

The Justice Department accused Allegiance of submitting and causing other hospitals to submit reimbursement claims to Medicare for medically unnecessary or unreasonable services. According to prosecutors, Allegiance began entering into arrangements with several Southeastern hospitals to run outpatient psychotherapy service centers within the hospitals, only to bill Medicare for inappropriate services.

Allegiance's settlement resolves a whistle-blower lawsuit filed in the Eastern District of Arkansas under the qui tam provision of the False Claims Act. Former Allegiance Program Manager Ryan Ladner filed the lawsuit and will receive about $300,000 of the settlement.  

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