Revenue Cycle

Ernst & Young to pay $1.5 million for bad billing advice

Patient Financial Services Weekly Advisor, July 23, 2004

Ernst & Young-one of the nation's largest accounting firms-agreed to pay the U.S. government $1.5 million to settle claims that it gave bad advice that led nine hospitals to overbill Medicare for outpatient lab tests.

The U.S. Attorney in Philadelphia filed a civil lawsuit in January, accusing Ernst & Young of causing hospitals in Connecticut, Indiana, Virginia, and Pennsylvania to submit more than 200,000 false claims to the government in the early- to mid-1990s.

The attorney's office said the firm gave incorrect advice on how to bill Medicare for a common blood test. Under the agreement, released July 19, New York-based Ernst & Young said it had done nothing wrong.

The suit said the nine laboratories in question used equipment that automatically performed a more thorough level of testing than was always necessary.

To read the press release, click here.

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