Corporate Compliance

San Mateo County agrees to pay $6.8 million to settle false claims allegations

Compliance Monitor, March 18, 2009

San Mateo county reached a settlement March 12 with the federal government in a whistleblower case against San Mateo Medical Center (SMMC) worth $6.8 million dollars, according to a Department of Justice press release.
The government alleged SMMC inflated its acute care bed count to receive extra payments through Medicare’s Disproportionate Share Hospital (DSH) adjustment. SMMC also allegedly failed to report mental services provided to patients between the ages of 22 and 64 to ensure it did not receive improper payments for those services.
The case was filed by Ronald M. Davis, a former employee of San Mateo County, via the qui tam provision of the False Claims Act, which allows private individuals to file false claims cases on behalf of the United States. Davis will receive $1 million for his participation.

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