Denver Health Medical Center has agreed to pay $6.3 million to the United States and State of Colorado to resolve allegations that it overbilled Medicare and Medicaid, according to a news release from the Attorney General of Colorado.
The hospital allegedly overbilled by misclassifying patients when they were admitted to the hospital by putting them under inpatient status when they were really outpatients or under observation status. The alleged overbilling took place from Jan. 2006-Dec. 2009.
As a result, Denver Health allegedly received a higher level of reimbursement from the federal agencies than it should have. The whistleblower who filed suit under the False Claims Act will receive roughly $818,000 of the settlement. Colorado’s share of the settlement is $1.1 million and the federal government will receive the rest.
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