Corporate Compliance

Illinois hospital settles Medicare fraud investigation for $1.34 million

Compliance Monitor, February 22, 2006

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A hospital that fraudulently received $450,000 in Medicare funds on the advice of a Kentucky consultant has agreed to pay a $1.34 million settlement, according to The State Journal Register in Springfield, IL. Officials at Abraham Lincoln Memorial Hospital in Lincoln, IL, agreed to the settlement to avoid a civil lawsuit for Medicare billing fraud.

This is the fourth hospital that has faced penalties for submitting false claims based on the advice of the consultant, Dr. Stephen Burkhart of Salem, KY. The codes he allegedly advised the hospitals to use weren't supported by the patient's medical records. Burkhart has denied that he did anything illegal or unethical in his advice to the hospitals, but may eventually face criminal charges or a civil lawsuit, Rodger Heaton, U.S. attorney for the central district of Illinois told the Journal Register.



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