Aetna wins $41.4M suit against Texas hospital over billing scheme

A federal judge ruled Aetna may collect up to $41.4 million in restitution from Humble (Texas) Surgical Hospital, concluding the five-bed hospital violated federal anti-kickback laws, according to Bloomberg BNA.

Advertisement

In an opinion issued Jan. 4, Judge Lynn Hughes of the U.S. District Court for the Southern District of Texas found HSH operated a “dishonest” billing scheme designed to “trick” the plaintiff Aetna into paying artificially inflated claims.

Specifically, Mr. Hughes found HSH created a series of shell companies through which more than 100 physicians received 30 percent kickbacks for referring patients to HSH. The hospital billed patients at in-network rates and submitted inflated reimbursement requests to Aetna, Mr. Hughes said.

The ruling comes seven months after HSH won $13.6 million in similar litigation against Cigna. In that suit, Cigna sued HSH over $5 million in alleged overpayments it made to the hospital for medical claims Cigna argued were “excessively large.” The judge ruled against Cigna in June 2016 and ordered the insurer reimburse HSH $13.6 million in unpaid claims.

More articles on legal issues: 

West Virginia reaches $3.5M settlement with drug wholesaler
21st Century Cures Act offers array of holiday gifts to healthcare providers
Federal judge halts ACA’s abortion-related, transgender protections

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.