Corporate Compliance

Iowa hospital pays U.S. $400,000 in False Claims Act settlement

Compliance Monitor, December 9, 2009

Mercy Medical Center in Sioux City, IA, will pay $400,000 to settle allegations of inflating charges for heart patient services, according to a Department of Justice (DOJ) press release.
 
The DOJ alleges that Mercy inflated costs for certain inpatient heart procedures from March 1999 through August 2003 and additionally submitted false statements involving Medicare and Medicaid cost reports for an Oakland, NE hospital from 2003 to 2006.
 
Mercy allegedly received reimbursements from Medicare, Medicaid, Tricare, and Federal Employees Health Benefits. Congress also provided Mercy with outlier payments for treating patients with a high cost of care, when Mercy was not entitled to receive such payments.

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