Hospitals Will Pay DOJ $12M To End Medicare Fraud Claims

Law360, Washington (February 7, 2012, 7:39 PM EST) -- Fourteen hospitals in seven states will pay more than $12 million to resolve allegations that they submitted false claims to Medicare for patient treatments, the U.S. Department of Justice announced Tuesday.

The settlement stems from a 2008 False Claims Act whistleblower case that alleged Medtronic Spine LLC and its predecessor Kyphon Inc. encouraged health care providers to perform kyphoplasty procedures, which are used to treat spinal fractures from osteoporosis, as inpatient treatments even though they could have been outpatient procedures.

The hospitals will pay between $73,000...
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