• E-mail
• Print
• RSS

Florida sues Tenet for improper Medicare reimbursements

Patient Financial Services Weekly Advisor, March 4, 2005

Florida sued Tenet Healthcare Corp. on racketeering charges March 2, alleging the company inflated fees to obtain $1 billion in improper reimbursements from a Medicare fund, Reuters reported.

The lawsuit, filed in the U.S. District Court in Miami, said Tenet's billing scheme prevented other public hospitals in the state from obtaining millions of dollars in Medicare reimbursements.

Tenet has been under government radar since 2002 when its billing practices became the target of federal investigations.

In addition to the state of Florida, plaintiffs in the lawsuit included 13 Florida hospitals or hospital districts.

"This appears to be a lawsuit motivated by a number of our Florida competitors and critics. It is specious and unwarranted," company spokesman Steven Campanini said. "We will vigorously defend ourselves against these charges."

The suit said Tenet schemed to a greater share than it was due of the outlier pool. The pool pays only if losses exceed a certain threshold, which is adjusted yearly according to what it pays in prior years, Reuters reported.

The lawsuit contends Tenet artificially inflated its bills so much it raised the threshold at which all hospitals could make claims from the fund, thereby denying the other medical centers their rightful reimbursements.

The lawsuit also said Tenet received excess compensation on thousands of occasions.

Reuters reported the lawsuit seeks damages estimated to be in the millions of dollars, which could be tripled under the racketeering statutes.

• E-mail to a Colleague
• Print
• RSS
• Archive