Harris County Hospital Pays $15 Million Settlement

June 5th
The United States Attorney’s Office

The Harris County Hospital District in Houston Texas has agreed to pay over $15 million to the United States and the State of Texas in a settlement that was brought under the False Claims Act.

An employee in the Patient Billing Services filed the lawsuit after observing false statements and claims being made in regards to Medicare and Medicaid from 2000 through 2005. He filed the lawsuit under the qui tam division of the False Claims Act.

The employee alleged that the Hospital District had been filing claims under Medicare and Medicaid without first seeking payment from primary carriers. He also alleged that the Hospital District was submitting claims for incarcerated individuals who received medical treatment. Incarcerated individuals usually pay for their bill themselves, and only in limited situations does Medicare and Medicaid cover them.

The terms of the settlement stipulated that $12,095,839 will go to the federal government, and $3,353,287 to the State of Texas. In a second part of the settlement, the Hospital District agreed to fully comply with all Medicare and Medicaid regulations in the future.

“The settlement reached in this case restores more than $15 million to the taxpayers of the United States and Texas, but more importantly, results in the Hospital District agreeing to properly invoice Medicare and Medicaid in the future,” said United States attorney Don GaBrielle.