Hospital to the Stars to repay Government $5.25 million
St. John’s Medical Center of Santa Monica, California has agreed to repay the federal government $5.25 million to settle claims that it overbilled Medicare. The government alleged that St. John’s “turbocharged” its claims to Medicare by raising charges more quickly than its actual costs rose. According to the government, the practice allowed St. John’s to obtain significantly greater outlier payments, which are payments designed to reimburse hospitals for extraordinarily costly care to patients, that it was not entitled to receive. The payment covers claims made between 1996 and 2009.