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Whistleblower Lawsuits Filed Against Community Health Systems Settled for $98.15 Million, Parker Waichman LLP Comments
Date:8/18/2014

Port Washington, New York (PRWEB) August 18, 2014

Parker Waichman LLP, a national law firm that represents whistleblowers in qui tam cases, comments that Community Health Systems Inc. (CHS) has agreed to pay $98.15 million to settle False Claims Act allegations. According to a press release issued by the United States Attorney’s Office for the Middle District of Tennessee on August 5, 2014, CHS allegedly submitted false claims by intentionally billing for more expensive inpatient services when less-expensive outpatient or observation services would have sufficed (United States ex rel. Bryant v. Community Health Systems, Inc., et al., Case No. 10-2695 (S.D. Tex.)). CHS is the country’s largest operator of acute care hospitals, according to the release.

David Rivera, the United States Attorney for the Middle District of Tennessee, said in the release, “This office is committed to ensuring that all companies billing government healthcare programs are responsible corporate citizens and that hospital providers do not engage in schemes to increase medically unnecessary in-patient admissions of government healthcare program beneficiaries in order to increase profits.” The release stated that several whistleblower lawsuits were resolved in the settlement.

According to Parker Waichman LLP, whistleblowers have been crucial to detecting and stopping fraud. The settlement enforces the message that punitive actions will be taken against companies that commit fraud and other wrongdoing.

Since 2011, the U.S. Department of Justice has been investigating CHS to determine whether or not they have been billing government health plans, such as Medicaid and Medicare, for inpatient services when they should have been billed as outpatient, acc
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