3 NY hospitals included in $8M fraud, kickback settlement

Kingston, N.Y.-based Benedictine Hospital, Columbia Memorial Hospital in Hudson, N.Y., and Yonkers, N.Y.-based St. Joseph's Medical Center as well as St. Louis-based SpecialCare Hospital Management Corporation and its CEO have agreed to pay more than $8 million to resolve claims that they defrauded the Medicare and Medicaid programs, according to the Department of Justice.

The settlement resolves allegations that the defendants operated inpatient drug and alcohol detoxification programs without having received licenses from the New York State Office of Alcoholism and Substance Abuse Services. The hospitals allegedly submitted claims to Medicare and Medicaid for unlicensed services that were provided to patients from 2002 to 2006.

The government further alleged that Columbia Memorial and St. Joseph's both paid SpecialCare for patient referrals in violation of federal and state anti-kickback statutes.

Although the defendants have agreed to this settlement, there has been no determination of liability in this case.

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