Corporate Compliance

NY hospital pays $2.9M to resolve false claims allegations

Compliance Monitor, March 3, 2010

Brookhaven Memorial Hospital Medical Center in Long Island, NY, will pay $2.92 million to resolve allegations it inflated charges to Medicare patients to receive outlier payments, according to a Department of Justice (DOJ) press release.

Medicare uses outlier payments to supplement reimbursement for healthcare providers when the cost of care is abnormally high. Brookhaven defrauded Medicare by increasing charges for cases that were not extraordinarily costly and for situations when outlier payments were unnecessary, according to the DOJ.

Whistleblower Tony Kite filed the suit under the False Claims Act’s qui tam provisions and will receive approximately $613,000 of the settlement.

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