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

le 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.


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SOURCE U.S. Department of Justice
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