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New York hospital to pay more than $1 million to settle fraud allegations

Compliance Monitor, August 22, 2007

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Parkway Hospital, Inc. has agreed to pay more than $1 million to settle charges it defrauded Medicare. The charges stemmed from an investigation by the U.S. Attorney's Office and HHS into the Forest Hills, N.Y., hospital.

The settlement comes after an investigation of allegations that Parkway fraudulently included costs in annual filings with Medicare that were not covered by Medicare, including costs associated with clinics owned by Parkway's physician owners, between 1992 and 1998.

According to a release on the DOJ Web site, Parkway "is obligated to establish and maintain a compliance program that includes the appointment of a ocmpliance foficer, creation of a compliance committee comprising key members of senior management, and the adoption of a code of ethics. Parkway must also engage an independent auditor to conduct annual audits of cost report submissions to the federal health care programs. The express purpose of the Compliance Program is to ensure that Parkway will meet all requirements of Medicare and other federally-funded health care programs."

To read the complete release, visit the DOJ Web site.

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