Navigation Links
United States Joins Suit Against Community Health Systems Inc. and Three of Its Hospitals in New Mexico

WASHINGTON, March 6 /PRNewswire-USNewswire/ -- The United States has intervened in a whistleblower suit filed in the District of New Mexico against Community Health Systems Inc. (CHS) and three of its hospitals in New Mexico: Eastern New Mexico Medical Center in Roswell, Mimbres Memorial Hospital in Deming, and Alta Vista Regional Hospital in Las Vegas. The suit alleges that CHS and its three hospitals violated the False Claims Act (FCA) by knowingly causing to be presented to the United States false claims for federal matching Medicaid funds, the Justice Department announced today.

Title XIX of the Social Security Act (the Medicaid Act) authorizes federal matching funds to the states for Medicaid programs to provide medical assistance to persons with limited income and resources. In order to ensure that state or local funds are the basis for the federal matching money, the Medicaid Act prohibits federal funding in instances where the state or county has received donations from health care providers that are related to the amount of Medicaid reimbursement paid to the provider.

The suit was filed under the qui tam or whistleblower provisions of the FCA by Robert Baker, a former revenue manager in CHS' corporate office. Under those FCA provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Under the FCA, the United States may recover three times the amount of its losses plus civil penalties.

The relator's complaint alleges that beginning in the summer of 2000, CHS and its three New Mexico hospitals improperly obtained federal funds through the New Mexico Sole Community Provider Fund (SCPF) and Sole Community Hospital Supplemental Payments (SCHSP) Medicaid programs. In particular, the relator alleges that CHS and its hospitals made donations to New Mexico counties which they knew would be used by the counties and the state to claim and obtain triple that amount in federal funding that was then paid to the hospitals under the SCPF and SCHSP programs. The relator alleges that CHS' donation arrangement violated the Medicaid Act's prohibition of provider donations that are related to the amount of Medicaid reimbursement paid to the provider.

While the qui tam action contains additional allegations, the United States is intervening only in allegations that CHS and its three New Mexico hospitals caused the submission of false claims to the United States.

The investigation was conducted by the Civil Division of the U.S. Department of Justice and the Office of Inspector General of the Department of Health and Human Services.

SOURCE U.S. Department of Justice
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. United Spinal Association Report Reveals the Importance of Studying Multiple Sclerosis in Children: Developing New Insights into MS in Adults
2. European Commission and United States Food and Drug Administration (FDA) Both Approve New Options for Patients With Certain Primary Brain Tumors
3. AUDIO from Medialink and UnitedHealthcare: Maintaining Your Health Coverage
4. On March 4, 2009, The United States Supreme Court Rejected the Rationale Behind Michigans Drug Product Liability Law
5. Naturally Safe Zucol(TM) Brings Europes Leading Cold Remedy to United States
6. United States Files Suit Against Missouri-Based Pharmaceutical to Block Manufacturing and Shipping of Unapproved Drugs
7. Americans United for Life Action: Nominating Governor Sebelius to HHS is Offensive and Divisive
8. United Concordia Dental Enhances Its Web-Based Find a Dentist Tool
9. United States Files Complaint Against Forest Laboratories for Allegedly Violating the False Claims Act
10. The Forensic Specialties Accreditation Boards Comments on the National Academy of Sciences Report - Strengthening Forensic Science in the United States
11. United Spinal Association Introduces The Veterans Health Council: Improving Veterans Health through Information and Advocacy
Post Your Comments:
(Date:11/27/2015)... ... 2015 , ... The print component of “Supporting Our Caregivers” ... New York, Minneapolis, South Florida, with a circulation of approximately 250,000 copies and ... vast social media strategy and across a network of top news sites and ...
(Date:11/27/2015)... (PRWEB) , ... November 27, 2015 , ... A simply ... Jones, is an interesting show that delves into an array of issues that are ... that could benefit from open dialogue, this show is changing the subjects consumers focus ...
(Date:11/27/2015)... (PRWEB) , ... November 27, 2015 , ... Dr. ... Medical Associates, Inc. and Dr. Tucker Bierbaum with Emergency Medicine at St., ... observed that both STEMI and Sepsis conditions present in similar ways and require time-critical ...
(Date:11/26/2015)... ... November 26, 2015 , ... CognisantMD and Cambridge ... imaging in the Waterloo region. Using the Ocean Platform, family physicians can now ... their electronic medical record (EMR) without the need for redundant patient entry or ...
(Date:11/26/2015)... ... November 26, 2015 , ... ... opinion process, participated in the 61st annual Employee Benefits Conference. The Employee Benefits ... place Sunday, November 8th through Wednesday, November 11th, 2015. The conference was held ...
Breaking Medicine News(10 mins):
(Date:11/25/2015)... Nov. 26, 2015  The total global healthcare industry is ... 2015-2016. Latin America has the highest ... (excluding Japan ), is second with growth ... to face increased healthcare expenditure. In 2013-2014, total government funded ... 43.5% in 2008-2009 to 41.2% in 2013-2014. In real terms, ...
(Date:11/25/2015)... , Nov. 25, 2015 AAIPharma Services ... investment of at least $15.8  Million to expand ... Wilmington, NC . The expansion will provide ... meet the growing demands of the pharmaceutical and ... site expansion will provide up to 40,000 square ...
(Date:11/25/2015)... 2015 Kitov Pharma ceuticals ... a biopharmaceutical company focused on the development of therapeutic ... today announced the closing of its previously announced underwritten ... ), each representing 20 ordinary shares of the Company, ... ADSs and warrants were issued in a fixed combination ...
Breaking Medicine Technology: