Corporate Compliance

NJ hospital agrees to $7.5M settlement

Compliance Monitor, December 19, 2007

Warren Hospital in Phillipsburg, N.J., agreed to pay the federal government $7.5 million to settle allegations that it defrauded Medicare, according to a press release by U.S. Attorney Christopher Christie.

According to the Department of Justice, Warren Hospital allegedly inflated charges to Medicare patients between January 1998 and August 2003 to make the cases appear more costly than they were. The hospital then received outlier payments to help cover the high costs.

In addition to the monetary settlement, Warren Hospital also entered into a five-year Corporate Integrity Agreement.

Two whistleblowers first brought the allegations to the government's attention and will split $1.2 million from the settlement.

Click here to read DOJ's press release.

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