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NC Hospital To Pay $1.9M To End Medicare Fraud Suit

Law360 (April 4, 2011, 5:46 PM EDT) -- A North Carolina hospital will pay $1.9 million to resolve allegations that it submitted false claims to Medicare, making it the 26th facility to settle claims over kyphoplasty spine procedures, attorneys said Monday.

The case filed against Rex Healthcare remains under seal, but the settlement was announced by the U.S. Department of Justice and lawyers for Chuck Bates and Craig Patrick, the former employees at Medtronic Spine LLC predecessor Kyphon Inc. who first alerted federal investigators of the fraud.

The settlement with Rex Healthcare comes about...
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