CA hospital to pay $4.1 Million to settle Medicare fraud claims
Compliance Monitor, February 11, 2004
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To resolve allegations that Coast Plaza and the former CEO defrauded the federal Medicare program, Coast Plaza Doctors Hospital in Norwalk, CA, and the estate of the former chief executive have agreed to pay the United States more than $4.1 million, U.S. Attorney Debra W. Yang announced last week.
Coast Plaza and the estate of Gerald J. Garner agreed to pay $4,106,735 to resolve allegations that the hospital and Garner defrauded Medicare.
The settlement resolves a portion of a "whistleblower" lawsuit filed in 1999 by Raul Lopez, a former chief financial officer of Coast Plaza.
After the settlement was paid on January 27, the government asked that the Medicare fraud claims in the lawsuit be dismissed. U.S. District Judge Gary L. Taylor signed the dismissal February 2.
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