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:5/28/2016)... ... , ... After a year and a half of planning the Multiple Pathways of Recovery ... Pathways of Recovery Conference was held May 2 -4, 2016 at the Mystic Marriott ... together to explore the many pathways individuals use to get into and sustain their recovery. ...
(Date:5/27/2016)... ... 2016 , ... Two director-level employees of Horizon Blue Cross Blue Shield of ... 2016 honorees. The award recognizes businesswomen who excel in their fields and who ... the MLTSS (Managed Long-Term Services and Supports) Program at Horizon NJ Health and Theresa ...
(Date:5/27/2016)... NY (PRWEB) , ... May 27, 2016 , ... This ... of a stroke, which we as a society can control and change. , As ... occurs nearly every 40 seconds within the United States. Plus, with an estimated 129,000 ...
(Date:5/27/2016)... ... May 27, 2016 , ... Aimed ... by inspiring human interest stories, courtesy of leaders in the nursing and health ... the industry, from leading advocates and associations—namely Jones & Bartlett Learning. , Jones ...
(Date:5/26/2016)... ... May 26, 2016 , ... Despite last week’s media reports hinting at ... company to wait until March 2017 for an interest rate increase, according to Rajeev ... of Business. , “The Federal Open Market Committee (FOMC) dot charts are of interest ...
Breaking Medicine News(10 mins):
(Date:5/25/2016)... CAMBRIDGE, England , May 25, 2016 /PRNewswire/ ... genomics company employing the precision of circulating tumour ... oncology, today announces the appointment of Professor ... will provide medical leadership across the clinical development ... that Inivata,s products help deliver significant improvements in ...
(Date:5/24/2016)... 24, 2016 Cirujanos holandeses han ... a los médicos a compartir sus mejores prácticas por ... mundial. Profesionales médicos de Europa, África, Asia ... a la aplicación, que combina la transmisión en vivo ... seguro. Educación   "Imagine un médico ...
(Date:5/24/2016)... May 24, 2016  Diana Russell suffers from a ... from the inside out.  This disease has put her ... her children and grandchildren to leave her home.  Because ... family cannot haul the wheelchair.  So if there is ... and Diana is left to wait for the bus. ...
Breaking Medicine Technology: