NYC Hospital Pays $13M For Medicare Turbocharging

By Keith Goldberg (March 1, 2012, 1:30 PM EST) -- Beth Israel Medical Center has agreed to pay $13 million to settle False Claims Act allegations that the New York City hospital overbilled Medicare by millions of dollars by fraudulently increasing charges for inpatient care, according to a Wednesday court filing.

The U.S. Department of Justice simultaneously filed the complaint and consent decree in New York federal court Wednesday. The government claimed Beth Israel manufactured excessive outlier payments, which Medicare uses to reimburse hospitals for extraordinarily costly inpatient cases as compared to normal inpatient cases, between 1998 and August 2003. Under the FCA's statute of limitations, however, the government can only...

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