Category: Healthcare

California Medical Billing Company Resolves Allegations of False Claims to Federal Health Care Programs

The Justice Department announced today that Janzen, Johnston & Rockwell Emergency Medicine Management Services Inc. (JJ&R), who handles billing services for physicians, hospitals and other health care providers, was accused of submitting false claims to Medicare and Louisiana’s Medicaid program and has agreed to settle and pay the United States $4.6 million.

Medicare Integrity Program

The Government Accountability Office was requested to look into how effectively the funding provided for the Centers for Medicare & Medicaid Services’ (CMS) Medicare Integrity Program (MIP) are being used to address the integrity of the Medicare Program. GAO took into account use of funding by CMS for MIP, how CMS evaluates MIP’s efficiency,

Male v. Female Billing Error Results in Settlement

St. Francis Hospital and Medical Center has settled a False Claims Act complaint for $516,527 amidst claims that it overbilled Medicare for a prostate cancer treatment. The drug Lupron is an injectable that is used to treat prostate cancer in men, as well as endometriosis and fibroids in women. The treatment for males and females each have a separate billing code,

Hospital Settles False Claims Act Complaint after Criminal Conviction

Following the conviction of cardiologist Dr. John R. McLean on six charges of health care fraud offenses, Peninsula Regional Medical Center in Salisbury, Maryland has agreed to pay $1.8 million to settle allegations that the hospital failed to prevent the doctor from inserting medically unnecessary cardiac stents. The $1.8 million settlement is being paid under the False Claims Act.

Increase in Hospice Care results in Increasing Fraud and Abuse

The New York Times reports that hospice care is under the microscope for care and treatment that may not be necessary.  The amount of money spent on hospice care grew from $2.9 billion in 2000 to more than $12 billion in 2009.  The increase is attributable to Medicare regulations some years ago that demonstrated that allowed for hospice care as a cost-effective way of caring for individual near the end of life. 

DOJ Intervenes Against Tennessee Cardiologist

On June 13, 2011, it was announced that the U.S. Department of Justice would intervene in a False Claims Act suit against Eli Hage Korban, M.D., and two Tennessee hospitals, Jackson-Medicine Country General Hospital and Regional Hospital of Jackson.  The suit is before Judge Bernice Bouie Donald, U.S. District Court for the Western District of Tennessee,

Supreme Court Rules that Laws Limiting Marketing Efforts of Drug Manufacturers Are a Violation of Free Speech

On Thursday, the United States Supreme Court struck down a Vermont law that blocked drug manufacturers’ use of prescription drug information in marketing campaigns designed to sell new drugs to physicians.  Although the law was designed to hold down health care costs and shield physicians from harassing marketing campaigns by preventing manufacturers from using prescription drug information to craft marketing campaigns,

Leading Private Ambulance Company to Pay $2.7 Million to Settle False Claims Act Suit

American Medical Response (“AMR”), one of the country’s largest private ambulance services, will pay the United States government $2.7 million to resolve allegations that it defrauded Medicare and other federal health insurance programs.

The allegations against AMR were originally brought by several former employees, who alleged that AMR coded “basic life support” calls as “advanced life support,” which are reimbursed at a higher rate by Medicare. 

Diagnostic Sleep Companies to Pay $650,000 to Settle False Claims Act Suit

Three related companies, Areté Sleep LLC, Areté Sleep Therapy LLC and Areté Holdings LLC, have agreed to pay the United States Department of Justice $650,000 to settle claims that the Areté companies defrauded Medicare in violation of the False Claims Act.  The settlement resolves claims that Areté submitted false claims to Medicare for diagnostic sleep tests performed by technicians lacking the licenses or certifications required by Medicare’s rules and regulations. 

U.S. District Court in Tennessee Awards Government in Excess of $82 Million in FCA Suit Regarding Medicare Fraud

On May 26, 2011, Judge William J. Haynes, Jr. awarded the United States $82,642,592.00 in damages after granting summary judgment in favor of the government on its False Claims Act (“FCA”) claim against Fresenius Medical Care Holdings, Inc.  The award was based on treble damages under the FCA of $38,873,592 and $43,769,000 in civil penalties.

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