Corporate Compliance

US joins whistleblower case against Community Health Systems Inc.

Compliance Monitor, March 11, 2009

The United States has gotten involved in a whistleblower case that alleges Community Health Systems Inc. (CHS) and three of its hospitals in New Mexico violated the federal False Claims Act, according to a Department of Justice press release.
 
The whistleblower, former CHS Revenue Manager Robert Baker, alleges that CHS made improper donations to New Mexico counties that were related to the amount of Medicaid reimbursement the organization would later receive. According to the press release, CHS allegedly made donations which it knew the counties and state would use to obtain triple the amount in federal funding, a scheme it carried out since 2000. The hospitals then received that amount under the New Mexico Sole Community Provider Fund and Sole Community Hospital Supplemental Payments Medicaid programs.

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