Illinois hospital to pay $292K to settle allegations it kept overpayments from insurers

Gibson Area Hospital in Gibson City, Ill., will pay $292,000 to resolve allegations that it failed to return overpayments from government insurers in violation of the False Claims Act, according to WAND TV.

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Prosecutors allege the hospital knowingly retained overpayments that were under $10, more than one year old or duplicate payments. Additionally prosecutors said the hospital kept overpayments if the payer didn’t request a refund more than three times.

The alleged actions took place between March 2014 and March 2020. 

The federal government will get about $208,000 from the settlement and Illinois will get about $84,000.

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