Catholic Health Initiatives to Pay $4.9M to Settle False Claims Allegations

Englewood, Colo.-based Catholic Health Initiatives has agreed to pay $4.9 million to resolve allegations that it overbilled Medicare and Medicaid by keeping patients in its St. Joseph Medical Center in Towson, Md., longer than necessary, according to a Baltimore Sun report.

Catholic Health Initiatives did not admit to wrongdoing under the settlement, which was finalized yesterday. The system recently sold St. Joseph to Baltimore-based University of Maryland Medical System, but is responsible for any liability prior to Dec. 1, 2012.

The hospital allegedly admitted and kept patients in the hospital for "short stays" — a one or two day admission — unnecessarily from 2007 through 2009. The allegedly unnecessary admissions were not tied to any one physician or department, according to the report.

Maryland will receive $152,406 of the settlement while the rest goes to the federal government.

More Articles on Hospitals and Settlements:

Continuum Health in New York to Pay $2.3M for False Claims Allegations
Beth Israel Deaconess to Pay $7M in High-Profile Gender Discrimination Suit
Cooper Health in N.J. Agrees to $12.5M Settlement for Alleged Kickbacks

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