Corporate Compliance

CA hospital to pay US $5.25 million for "turbocharging"

Compliance Monitor, September 1, 2010

A Santa Monica, CA hospital will pay the United States $5.25 million to resolve allegations that the hospital submitted false inflated claims to Medicare for outlier payments – increased reimbursement for providing extra costly care, according to a Department of Justice (DOJ) press release.

The DOJ alleged that Saint John’s Health Center illegally increased the charges billed to Medicare for care provided to hospital inpatients far in excess of any increase in the costs associated with that care (a.k.a. turbocharging). According to the DOJ, Saint John’s turbocharged from 1996 through 2003 receiving significant amounts of Medicare outlier payments.

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