Corporate Compliance

Seven hospitals to pay more than $6.3 million to resolve False Claims Act allegations related to kyphoplasty

Compliance Monitor, January 5, 2011

Seven hospitals agreed to pay the United States a total of more than $6.3 million to settle allegations that the facilities submitted false claims to Medicare, according to a Department of Justice (DOJ) press release.

The hospitals, located in Florida, Mississippi, Texas, South Carolina, North Carolina, and Alabama, allegedly overcharged Medicare when performing kyphoplasty, a minimally-invasive procedure used to treat certain spinal fractures. The DOJ contends that the hospitals performed kyphoplasy procedures on an inpatient basis in order to increase Medicare reimbursement. In many cases, the procedure can be performed safely as an outpatient procedure.

The settling facilities include the following:

  • Lakeland Regional Medical Center, Lakeland, FL. ($1,660,134.49)
  • The Health Care Authority of Morgan County – City of Decatur dba Decatur General Hospital, Decatur, AL. ($537,892.88)
  • St. Dominic-Jackson Memorial Hospital, Jackson, MS. ($555,949.35)
  • Seton Medical Center, Austin, TX. ($1,232,955.91)
  • Greenville Memorial Hospital, Greenville, SC. ($1,026,764.01)
  • Presbyterian Orthopaedic Hospital, Charlotte, NC. ($637,872.57)
  • The Health Care Authority of Lauderdale County and the City of Florence, AL., dba the Coffee Health Group, fka Eliza Coffee Memorial Hospital ($676,038.00).

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