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:10/13/2017)... ... 2017 , ... Lori R. Somekh, founder of the Law Office of ... elder law and special needs planning attorneys. “Membership in ElderCounsel helps our office remain ... to network with elder law attorneys nationwide,” said Somekh. , ElderCounsel ...
(Date:10/13/2017)... SAN LUIS OBISPO, Calif. (PRWEB) , ... October 13, 2017 , ... ... with Alzheimer’s or dementia. However, many long-term care insurance companies have a waiver for ... mean is the 90-day elimination period, when the family pays for care, is often ...
(Date:10/13/2017)... ... , ... Ellevate Network, the leading network for professional women, brought together some ... at their inaugural Summit in New York City in June. The event was livestreamed ... over 3 million. To watch the Mobilize Women video, click here . ...
(Date:10/13/2017)... ... October 13, 2017 , ... Yisrayl Hawkins, Pastor and Overseer ... one of the most popular and least understood books in the Holy Scriptures, Revelation. ... descriptions that have baffled scholars for centuries. Many have tossed it off as mere ...
(Date:10/13/2017)... ... October 13, 2017 , ... Coveros, a leader in ... awarded a contract by the Center for Medicare and Medicaid Services (CMS). The ... enterprise use of Agile methodologies in a consistent and high value manner across ...
Breaking Medicine News(10 mins):
(Date:10/12/2017)... Divoti USA will engrave and process all non-coated ... latest FDA requirements, which stipulates new criteria regarding medical device manufacture ... Medical ID jewelry such as Medical ID Bracelets, can rest assured ... of the new FDA requirements . ... Divoti offers this dark mark fiber laser engraving process ...
(Date:10/11/2017)...  Caris Life Sciences ® , a leading innovator ... precision medicine, today announced that St. Jude Medical Center,s ... (POA) as its 17 th member. Through participation ... Cancer Institute will help develop standards of care and ... making cancer treatment more precise and effective. ...
(Date:10/10/2017)... received FDA 510(k) clearance in May 2017 for its highly anticipated ... for endoscopy environments. An innovative secondary monitor solution, ZeroWire Mobile ... the improvement of patient outcomes, procedural efficiency, and the lowering of ... ... By ...
Breaking Medicine Technology: