Corporate Compliance

Whistleblower files $90M fraud lawsuit against TN hospital corporation

Compliance Monitor, August 19, 2009

Community Health Systems Inc., a Tennessee-based heathcare corporation, allegedly made illegal donations to New Mexico counties that contain three Community Health hospitals, according to an August 10 Albuquerque Journal article.
 
The suit claims Community Health made donations to the counties to subsidize the state’s Medicaid contributions. The counties then allegedly turned that money over to the state as their Medicaid contribution. Because the federal government pays three times what the state pays for Medicaid, Community Health allegedly received a return on their investment plus triple the amount donated.
 
The whistleblower suit was filed in 2005 by a former employee, Robert C. Baker. According to the article, Baker learned about the scheme when he took over as revenue manager for Eastern New Mexico Medical Center in Roswell.

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