Hospital Self-Reports Overbilling To Federal Government And Agrees To Pay $4.9 Million In Restitution

Catholic Health Initiatives, previous owner of St. Joseph Medical Center, will pay the federal government $4.9 million because it kept Medicare and Medicaid patients in the hospital longer than was necessary.  The company based in Denver, owns hospital around the county.  Previously and unrelated to the current settlement, the medical company was involved in lawsuits from hundreds of patients who accused star cardiologist at St. Joseph, Dr. Mark Midei of placing unneeded stents in arteries of patients.  CHI paid the federal government $22 million dollars in that case for allegations of a kickback scheme involving the cardiology practice where Dr. Midei practiced and to repay Medicare for the unnecessary stents placed in patients under Dr. Midei’s care.

A routine audit by St. Joseph uncovered the unnecessary stays and was reported to officials in the federal government.  Patrick Burns, spokesperson for Taxpayers Against Fraud stated, “It’s a huge difference if they self-reported.  That means at least somebody inside the company has integrity and realized that the cost of avoiding bad news was going to be worse than facing the bad news.”

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