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Universal Health To Pay $3.5M To Settle Medicare Fraud Suit

Law360, New York (May 2, 2012, 2:21 PM EDT) -- Universal Health Services Inc. and a subsidiary will hand over nearly $3.5 million to settle a whistleblower’s False Claims Act allegations of Medicare fraud related to billing at a California psychiatric center, federal officials said Tuesday.

The case began in 2009 when Roxy P. Warner, an employee at Sierra Vista Hospital in Sacramento, Calif., filed a qui tam complaint alleging rampant overcharging of Medicare.

Warner disobeyed orders not to audit Sierra Vista’s Medicare files, and found the hospital was exaggerating the severity of patient illnesses in...
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