Pennsylvania hospital strikes $2.5M deal in fraudulent billing case

Millcreek Community Hospital in Erie, Pa., has agreed to pay $2.45 million to resolve False Claims Act allegations, according to the Department of Justice.

The Justice Department alleged that Millcreek Community Hospital admitted patients to its inpatient rehabilitation unit who did not qualify for those services between July 1, 2013, and Dec. 31, 2017. During that time the hospital staff also allegedly failed to document in patients' medical records that the inpatient rehabilitation services were medically necessary.

The government alleged Millcreek Community Hospital violated the False Claims Act by billing Medicare and Medicaid for the medically unnecessary services.

In addition to the monetary settlement, Millcreek Community Hospital agreed to enter into a corporate integrity agreement with HHS' Office of Counsel to the Inspector General. The agreement requires the hospital's billing to be monitored for five years, according to the Justice Department.

"Millcreek chose to enter into a settlement to expeditiously resolve the matter and avoid any distractions from its primary focus of providing high-quality care to its patients," the hospital said in a statement to "Although Millcreek fully cooperated with the government in its investigation, it did not admit to any wrongdoing in its settlement. It is pleased to have resolved this issue."

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