Navigation Links
Condell Health Network and Medical Center to Pay $36 Million Settlement After Self-Reporting Possible Health-Care Fraud
Date:12/1/2008

CHICAGO, Dec. 1 /PRNewswire-USNewswire/ -- Condell Health Network, parent corporation of Condell Medical Center, a 283-bed hospital in Libertyville - after voluntarily disclosing that it received improper Medicare and Medicaid payments - has agreed without litigation to pay the United States and the State of Illinois$36 million as a result of filing false claims for reimbursement, announced Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois. Condell, the largest health care provider in Lake County, Ill., made the voluntary disclosure earlier this year while in the process of being acquired by Advocate Health Care, of Oak Brook, Ill., which was scheduled to be completed today.

The settlement involves three aspects of the relationship between Condell and its physicians from 2002 through 2007: leases of medical office space at rates below fair market value; improper loans to physicians; and hospital reimbursement to doctors who performed patient services without required written agreements.

By voluntarily disclosing these improper practices, Condell avoided a government lawsuit under the federal False Claims Act and was able to negotiate a settlement at a discount. The settlement agreement calls for Condell to pay the United States$33.12 million to resolve claims relating to Medicare patients and $2.88 million to the state of Illinois to settle claims relating to Medicaid patients. The False Claims Act provides that parties who voluntarily disclose possible violations are liable for double damages, instead of triple damages, and civil penalties between $5,500 and $11,000 for each violation.

"We commend Condell for bringing these practices to our attention. We expect health care providers to come forward when they discover issues that could rise to the level of fraud without waiting for us to catch up to them, and when they do so, they may well benefit," said U.S. Attorney Fitzgerald. He announced the settlement with U.S. Department of Health and Human Services, Office of Inspector General, and the Justice Department's Civil Division.

As part of the $36 million settlement, Condell does not admit liability and agreed to the settlement to avoid the delay, uncertainty and expense of protracted litigation. According to the settlement agreement, Condell leased space in medical office buildings it owned to physicians in violation of federal laws and regulations governing Medicare and Medicaid reimbursement because either the rental rates were below fair market value or Condell abated or deferred collection of rental payments.

Condell also gave loans to physicians and improperly allowed them to "work off" the debts at hourly rates that were greater than fair market value, as well as with activities that did not benefit the community. Condell extended loans to doctors without assessing whether there was a particular community need for such arrangements or physicians, provided loans to doctors already in the hospital's service area, gave loans that benefited individual doctors or physician groups rather than the community, and entered into multiple loan agreements with the same physician or medical group. Condell also paid its physician recruiters incentive bonuses and its financial support agreements prohibited doctors from obtaining admitting privileges at any other hospital, the settlement agreement states. In addition, the settlement covers Medicare and Medicaid reimbursements that Condell paid to doctors for performing services at the hospital without required written agreements.

The United States was represented by Assistant U.S. Attorney Linda A. Wawzenski, deputy chief of the U.S. Attorney's Office Civil Division.


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

Related medicine news :

1. HealthMetrix Research Finds Medicare Advantage Plans Offer Seniors Opportunity to Lower Their 2009 Out-of-Pocket Drug Costs
2. PA Department of Health Recognizes 20th Anniversary of World AIDS Day; Urges HIV Testing
3. Johns Hopkins and Makerere University to collaborate on African health education initiative
4. Citing Midnight Rules to Erode Health and Safety, Nurses Unveil New Website to Send Bush Packing
5. Quark Pharmaceuticals to Present at the 20th Annual Piper Jaffray Health Care Conference
6. Vapotherm to Present at the Piper Jaffray 20th Annual Health Care Conference
7. Health Needs of Autistic Children Often Unmet
8. Holding On to Your Health Coverage: 5 Steps to Consider If Youve Been Laid-Off
9. Cardinal Health, SRI Surgical Sign Five-Year Agreement For Surgical Kits
10. Genstar Capital Launches New Senior Care Services Platform UniVita Health and Agrees to Acquire Outsourced Insurance Services Provider, Long Term Care Group
11. Giving the Gift of Health This Holiday Season
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... ... June 25, 2016 , ... The temporary closing of Bruton Memorial Library on June 21 ... brings up a new, often overlooked aspect of head lice: the parasite’s ability to live ... not a common occurrence, but a necessary one in the event that lice have simply ...
(Date:6/25/2016)... ... ... As a lifelong Southern Californian, Dr. Omkar Marathe earned his Bachelors in ... School of Medicine at UCLA. He trained in Internal Medicine at Scripps Green Hospital ... at the UCLA-Olive View-Cedars Sinai program where he had the opportunity to train in ...
(Date:6/25/2016)... ... 2016 , ... Conventional wisdom preaches the benefits of moderation, whether it’s a ... the bar too high can result in disappointment, perhaps even self-loathing. However, those who ... , Research from PsychTests.com reveals that behind the tendency to set ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World Sickle ... chronic pain and the benefits of holistic treatments, Serenity Recovery Center of ... Sickle Cell Disease. , Sickle Cell Disease (SCD) is a disorder of the red ...
(Date:6/24/2016)... ... , ... Global law firm Greenberg Traurig, P.A. announced that 20 Florida attorneys ... peers for this recognition are considered among the top 2 percent of lawyers practicing ... members of this year’s Legal Elite Hall of Fame: Miami Shareholders Mark D. ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... 24, 2016 Dehaier Medical Systems Ltd. (NASDAQ: ... develops, markets and sells medical devices and wearable sleep ... a strategic cooperation agreement with Hongyuan Supply Chain Management ... on June 20, 2016, to develop Dehaier,s new Internet ... agreement, Dehaier will leverage Hongyuan Supply Chain,s sales platform ...
(Date:6/24/2016)... Belgium , June 24, 2016 ... today announced the appointment of Dr. Edward ... as a Non-Executive Director, effective June 23, 2016.Dr. ... Compensation and Nominations and Governance Committees.  As a ... will provide independent expertise and strategic counsel to ...
(Date:6/23/2016)... June 23, 2016 Research and ... Excipients Market by Type (Organic Chemical (Sugar, Petrochemical, Glycerin), ... Topical, Coating, Parenteral) - Global Forecast to 2021" ... The global pharmaceutical excipients market is projected ... CAGR of 6.1% in the forecast period 2016 to ...
Breaking Medicine Technology: