Robert Wood Johnson University Hospital has agreed to pay $6.35 Million to settle allegations of violations of the False Claims Act. The suits alleged that the Hamilton, New Jersey hospital fraudulently inflated its charges to Medicare patients to obtain larger “outlier payments.” Congress enacted the supplemental outlier payments to ensure that hospitals have incentives to treat patients whose care requires unusually high costs.
Minnesota’s False Claims Act, which will take effect July 1, 2010, differs from its federal and other state counterparts in several key respects that may have a chilling effect on qui tam actions in this state. Whether it’s “Minnesota nice” or an effective deterrent against fraud remains to be seen.
Three New York City Home Health Agencies Pay $9.7 Million to the United States to Settle False Claims Act Claims
The United States and the State of New York have entered into settlement agreements with three home health agencies to resolve allegations that the agencies submitted false claims to the New York Medicaid and Medicare Programs.
The New York Medicaid Program provides coverage for home health aides only if those aides have valid certificates showing that they received proper training.
St. John’s Health System, headquartered in Tulsa, Oklahoma, has agreed to pay the United States $13,229,348.88 to settle allegations that it submitted claims to Medicare and Medicaid that were tainted by the hospital’s financial relationships with referring physicians.
Federal law prohibits health care providers like St.
Chevron Agrees to Pay More Than $45 Million Dollars to Resolve Allegations of False Claims for Royalties Under Payment
Chevron Corporation, Texaco, Unocal, Inc. and their affiliates (the Chevron Companies), have agreed to pay the United States $45,569.584.74 to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases.
Responsibility for overseeing the collection of royalties on federal and Indian leases lies with the Minerals Management Service (MMS) of the U.S.
The University of Phoenix has agreed to pay $67.5 million to the United States to resolve allegations that its student recruitment policies violated the False Claims Act. Two former University of Phoenix employees alleged that the University accepted federal student financial aid in violation of statutory and regulatory provisions that prohibit post-secondary schools from paying admissions counselors certain forms of incentive based compensation tied to the number of students recruited.
The Visiting Physicians Association (“VPA”), which provides home health services in Michigan, Ohio, Georgia and Wisconsin, will pay the United States and the state of Michigan $9.5 million to settle allegations that the VPA violated the False Claims Act by submitting false claims to Medicare, TRICARE and the Michigan Medicaid program.
Colorado-based Spectranetics Corporation to Pay $5 Million to Resolve Allegations Relating to Its Medical Devices
The Department of Justice announced that Spectranetics Corporation, a medical device manufacturer, has agreed to pay the United States $4.9 million in civil damages plus a $100,000.00 forfeiture to resolve various claims against the company. Spectranetics sells certain types of medical lasers and peripheral devices for those lasers.