Navigation Links
Minnesota Hospitals to Pay U.S. $2.28 Million to Settle False Claims Act Allegations
Date:5/21/2009

WASHINGTON, May 21 /PRNewswire-USNewswire/ -- Three HealthEast Care System hospitals have agreed to pay the United States $2.28 million to settle allegations that the health care facilities submitted false claims to Medicare, the Justice Department announced today. All three hospitals are located in the Minneapolis-St. Paul, Minn., area.

The settlement resolves allegations that the St. Paul-based hospitals overcharged Medicare from 2002 to 2007 by thousands of dollars each time they performed kyphoplasty, a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis. The procedure can be performed safely as an outpatient surgery, but the government contends that the HealthEast hospitals performed the procedure on an inpatient basis in order to increase their Medicare billings.

"The Department of Justice is committed to ensuring that Medicare dollars are spent appropriately, and we will prevent Medicare providers from profiteering by providing unnecessary services," said Tony West, Assistant Attorney General for the Department's Civil Division.

The settlement with HealthEast follows the government's May 2008 settlement with Medtronic Spine LLC, corporate successor to Kyphon Inc. Medtronic Spine paid $75 million to settle allegations that the company defrauded Medicare by counseling hospital providers to perform kyphoplasty procedures as an inpatient procedure even though the minimally-invasive procedure should have been done in many cases as an outpatient procedure.

"By keeping patients overnight, hospitals could seek greater reimbursement from Medicare and make much larger profits on kyphoplasty," said Kathleen Mehltretter, Acting U.S. Attorney for the Western District of New York in Buffalo.

St. Joseph's Hospital, St. John's Hospital and Woodwinds Hospital - all part of the HealthEast Care System - are the first hospitals to settle Medicare fraud allegations related to kyphoplasty claims. The hospitals previously paid $1.45 million after determining through a self-audit that they had overbilled Medicare for inpatient kyphoplasty claims that should have been billed as outpatient procedures. This amount has been credited against the total settlement of $2.28 million.

The qui tam or whistleblower lawsuit against the HealthEast hospitals was brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in 2008 in federal district court in Buffalo, N.Y. by Craig Patrick and Charles Bates. Mr. Patrick of Hudson, Wis., is a former reimbursement manager for Kyphon, and Mr. Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala.

The settlement with the HealthEast hospitals was the result of a coordinated effort by the U.S. Attorney's Office for the Western District of New York, with assistance from the Commercial Litigation Branch of the Justice Department's Civil Division, and the Department of Health and Human Services' Office of Inspector General and Office of Counsel to the Inspector General.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. ClearWay Minnesota(SM) Board Approves Four Regional Grants
2. Minnesota Passes Legislation Allowing Mid-level Oral Health Provider
3. University of Minnesota Physicians Chooses MedAptus Following Comprehensive Vendor Review
4. Minnesota Life Engages Atomic Playpen to Build Market Awareness
5. Growth of Long Term Care Costs Outpacing the Rate of Inflation in Minnesota, According to Annual Genworth Financial Study
6. Minnesotas Grades Tumble In Latest American Lung Association State of the Air Report
7. Minnesota Smokers Turning to QUITPLAN(R) Services After Cigarette Tax Hike
8. Delta Dental Plans Association and Delta Dental of Minnesota Agree to Conditions Regarding Supplier
9. Blue Cross and Blue Shield of Minnesota Releases 2008 Financial Results
10. Minnesota Health Plans Reserves, Investment Income Down
11. Childrens Hospitals and Clinics of Minnesota Launches Series of Events to Benefit Cardiac Care
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/27/2016)... ... 27, 2016 , ... An educational campaign aimed at everyone ... courtesy of awareness-driven celebrities and thought leaders. It also provides insight to the ... leaders such as Bioness. , As patients feel increasingly concerned about the ...
(Date:5/27/2016)... Killeen, Texas (PRWEB) , ... May 27, 2016 , ... ... with satisfying Army body fat composition regulations. This is the first time that ... are normally screened at least every six months to ensure they meet the prescribed ...
(Date:5/27/2016)... ... May 27, 2016 , ... Aimed at nurses and employees in the health ... of leaders in the nursing and health care industry. It also provides insight to ... Christian University. , As the nursing industry is coming out of one of ...
(Date:5/27/2016)... ... 27, 2016 , ... With a team of certified experts, ... Aside from its GMP accreditation, Validation Center is also a registered authority of ... and staff. , Validation Center is ISO17025 accredited and only offers its clients ...
(Date:5/26/2016)... ... 26, 2016 , ... There are many ways to cook a hot dog, ... that Americans prefer their dogs straight off the grill. Of the 90 percent of ... way to cook a hot dog, far outpacing other cooking methods such as steaming ...
Breaking Medicine News(10 mins):
(Date:5/25/2016)... Germany and GERMANTOWN, Maryland ... (NASDAQ: QGEN ; Frankfurt Prime Standard: QIA) today ... co-development agreement with Therawis Diagnostics GmbH to develop and commercialize ... develop and market PITX2 as a marker to predict effectiveness ... cancer patients. "We are pleased to partner with ...
(Date:5/25/2016)... , May 25, 2016 ... & Expo earlier this month, the numbers and momentum ... continue to climb into the billions, more research and ... released 4th Edition State of Legal Marijuana Markets Report ... cannabis-focused data-analysis firm, much of the increase in sector ...
(Date:5/25/2016)... , May 25, 2016 ... employing the precision of circulating tumour DNA (ctDNA) ... announces the appointment of Professor Clive Morris ... medical leadership across the clinical development programme, scientific ... products help deliver significant improvements in clinical outcomes ...
Breaking Medicine Technology: