DOJ officials contend that the medical center misreported the hours worked by its employees on its annual cost reports from 2006 to 2009. Medicaid uses a hospital’s wage index to determine the amount a hospital should receive in payments. Because Yavapai artificially inflated the index, the DOJ claims the federal government improperly paid the hospital $19.1 million ─ substantially more than the hospital was warranted.
The settlement resolves a lawsuit filed in April by Gregory Kuzma under the qui tam provision of the False Claims Act. Mr. Kuzma will receive approximately $1.17 million under the provision.
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