Category: Healthcare

Feds probe alleged fraud at UT Southwestern, Parkland

On May 30, 2010, the Dallas Morning News brought to light allegations of decades of Medicare and Medicaid billing fraud at the prestigious University of Texas Southwestern Medical Center and its affiliated Parkland Memorial Hospital.  The report provided examples of the systemic allegations, including medical residents performing surgeries such as appendectomies and even a leg amputation without faculty or attending physician supervision. 

Wasden Obtains $1.2 Million in Drug Pricing Settlement

The State of Idaho has agreed to settle claims against two groups of the Actavis pharmaceutical company related to allegations that Actavis knowingly inflated reported wholesale prices of certain drugs in order to receive extra compensation from the State’s Medicaid program.  For $1.2 million, the two Actavis companies will be released from a lawsuit that was filed in 2007 by the State’s Attorney General against them and other pharmaceutical companies,

New Jersey Hospital to Pay $6.35 Million to Resolve Allegations of Inflating Charges

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. 

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. 

Oklahoma Hospital Group Pays $13 Million to Settle False Claims Act Allegations

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. John’s from billing the federal healthcare program for referrals from doctors with whom the providers have a financial relationship,

Visiting Physicians Association to Pay $9.5 Million to Resolve False Claims Act Allegations

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.  The claims against Spectranetics arose from allegations that the company engaged in several inappropriate acts from 2003 to 2008,

Minnesota Hospital to Pay U.S. to Resolve Allegations of False Claims Involving Unnecessary Admissions

Wheaton Community Hospital, the City of Wheaton (MN), and Dr. Stanley Gallagher have agreed to pay the United States $846,461.00 to settle allegations that their hospital admission practices violated the False Claims Act.  In particular, the suit against Wheaton Community Hospital, the City, and Dr. Gallagher alleged that they admitted some patients and kept others admitted to acute care when doing so was not medically necessary. 

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