Grenada (Miss.) Lakes Medical Center, which has been operated by the University of Mississippi Medical Center at various times, will pay over $1.1 million for fraudulently billing Medicare for intensive outpatient psychotherapy sessions.
From 2005 to 2013 the hospital submitted Medicare claims for the group therapy sessions, performed on the hospital's behalf by Allegiance Health Management, that did not qualify for reimbursement. Allegiance and more than 20 hospitals where it provided services have already entered into settlement agreements.
“Hospitals that participate in the Medicare program are responsible for ensuring that the services performed at their facilities or on their behalf reflect the medical needs of patients rather than the desire to maximize profit,” said acting Assistant Attorney General Chad A. Readler for the Civil Division. “The Department of Justice will continue to hold accountable those who misspend taxpayer funds by providing medically inappropriate services.”
The lawsuit was filed by a whistle-blower who formerly worked for Allegiance.