Tennessee Hospitals Will Pay $8 Million To Settle Medicare Fraud Allegations
December 23, 2008
On December 1, the Memphis Business Journal reported that two Tennessee hospitals will pay $8 million to resolve Medicare fraud allegations. The U.S. Department of Justice argued that claims submitted by the Jackson-Madison County and Milan General Hospitals violated the Federal False Claims Act.
Between July 1997 and June 2002, Jackson-Madison County General Hospital was found to have submitted claims to Medicare that did not meet medical necessity and documentation requirements. The hospital will pay $2.6 million to resolve these charges.
Milan General was charged with improperly admitting Medicare patients into its psychiatric unit and billing Medicare for lengths of stay in units that exceeded coverage criteria. These offenses were reported to have happened between July 1999 and December 2003. Milan General will pay $5.3 million to settle the allegations.
“These settlements with Jackson Madison General and Milan General should serve as a warning to other health care providers who seek to defraud Medicare or any other federal health care programs,” said Lawrence Laurenzi, acting U.S. Attorney for the Western District of Tennessee.
If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
