Navigation Links
Cathedral Healthcare System to Pay U.S. $5.3 Million to Resolve Allegations Involving Inflated Charges to Obtain Higher Medicare Reimbursement
Date:3/4/2008

WASHINGTON and NEWARK, N.J., March 4 /PRNewswire-USNewswire/ -- Cathedral Healthcare System Inc. has agreed to pay the United States $5.3 million, plus interest, to settle allegations that it defrauded the federal Medicare program, the Justice Department announced today.

The settlement resolves allegations that the Newark, N.J.-based hospital system improperly increased charges to Medicare patients in order to obtain enhanced reimbursement from the federal health care program. In addition to its standard payment system, Medicare pays supplemental reimbursement to hospitals, called outlier payments, in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals have the incentive to treat inpatients whose care requires unusually high costs.

The government alleged that, between January 1998 and August 2003, Cathedral improperly inflated charges for inpatient and outpatient care to make these cases appear more costly than they actually were, and thereby obtained outlier payments from Medicare that it was not entitled to receive.

"Today's settlement shows how the Department of Justice is committed to rooting out practices where hospitals knowingly overcharge the federal Medicare program," said Jeffrey S. Bucholtz, Acting Assistant Attorney General of the Justice Department's Civil Division.

The civil settlement agreement resolves allegations against Cathedral that were filed in three separate federal lawsuits brought by "whistleblowers" under the federal False Claims Act. The False Claims Act permits private citizens to bring lawsuits on behalf of the United States.

Under the settlement, Peter Salvatori and Sara Iveson, the relators in the first of the three lawsuits, will receive $848,000.

"This settlement demonstrates this office's determination to ensure the integrity of the Medicare system for the citizens of New Jersey," said Christopher J. Christie, U.S. Attorney for the District of New Jersey.

Cathedral has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. The Corporate Integrity Agreement contains measures to ensure compliance with Medicare regulations and policies in the future.

The settlement with Cathedral was the result of a coordinated effort among the Justice Department's Civil Division, Commercial Litigation Branch; the U.S. Attorney's Office for the District of New Jersey, Affirmative Civil Enforcement Unit; the U.S. Attorney's Office for the Eastern District of Pennsylvania; the Department of Health and Human Services, Office of Inspector General and Office of Counsel to the Inspector General; the Centers for Medicare and Medicaid Services; and the Federal Bureau of Investigation, in investigating and resolving the allegations.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. National Energy Services Receives Repeat Orders From Golden Living and Cathedral Rock Skilled Nursing Facilities
2. Bayer HealthCare and Juvaris BioTherapeutics Announce Major Licensing Agreement
3. Anthem Blue Cross and Blue Shields Promoting Healthcare Quality Program Improves Quality and Patient Safety in 19 Colorado Hospitals
4. Benefitfocus(R) Healthcare Video Portal Merges Community with Credibility
5. Prime Healthcare Services Enters Into Network Wide Contract With Aetna Health Plans
6. UPDATED: Catholic Healthcare West and SEIU Begin Negotiations for 15,000 Hospital Workers
7. Catholic Healthcare West and SEIU Begin Negotiations for 15,000 Hospital Workers
8. New Jersey Hospital Association Presents Awards for Commitment to Healthcare
9. Childrens Healthcare of Atlanta Announces Major Investment in Pediatric Research as Part of 10-Year Vision
10. DURECT to Participate in Susquehanna Financial Healthcare Conference
11. Pinstripe Healthcare Group Adds Veteran HR Executive Warner as Client Services Director
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture animations, FCPX users ... - CEO of Pixel Film Studios. , ProHand Cartoon’s package transforms over 1,300 ... Pro X . Simply select a ProHand generator and drag it above media or ...
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... As a ... Magna Cum Laude and his M.D from the David Geffen School of Medicine at ... returned to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars ...
(Date:6/25/2016)... ... ... On Friday, June 10, Van Mitchell, Secretary of the Maryland Department of Health ... of their exemplary accomplishments in worksite health promotion. , The Wellness at Work Awards ... at the BWI Marriott in Linthicum Heights. iHire was one of 42 businesses to ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... A recent ... that most people are unfamiliar with. The article goes on to state that individuals ... also many of these less common operations such as calf and cheek reduction. The ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World ... with chronic pain and the benefits of holistic treatments, Serenity Recovery Center ... with Sickle Cell Disease. , Sickle Cell Disease (SCD) is a disorder of the ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... ANDOVER, Mass. and SAN CLEMENTE, Calif. ... California -based mobile pulmonary function testing company, is now ... portable PFT devices developed by ndd Medical Technologies , Inc. ... PFT testing done in hospital-based labs.  Thanks to ndd,s EasyOne PRO ... CA , can get any needed testing done in the ...
(Date:6/24/2016)... , June 24, 2016 ... appointment of Dr. Edward Futcher to ... Director, effective June 23, 2016.Dr. Futcher was also ... and Governance Committees.  As a non-executive member of ... expertise and strategic counsel to VolitionRx in connection ...
(Date:6/23/2016)... -- Any dentist who has made an implant supported denture ... of them do not even offer this as a viable ... costs involved. And those who ARE able to offer that ... cost that the majority of today,s patients would not be ... , founder of Dental Evolutions Inc. and inventor of Implanova ...
Breaking Medicine Technology: