Corporate Compliance

Bayonne Hospital settles fraud case

Compliance Monitor, February 13, 2008

The buyers of Bayonne Medical Center have agreed to settle allegations of Medicare fraud for $2.5 million plus interest, according to a Department of Justice (DOJ) press release.

The settlement resolves allegations that between January 2000 and August 2003, Bayonne purposefully inflated charges for inpatient and outpatient care to make these cases appear more costly than they actually were. By inflating the charges, the hospital received outlier payments from Medicare that it was not entitled to receive.

Bayonne filed for bankruptcy in 2007. IJKG, LLC, agreed to purchase the hospital's assets and to settle the claims.

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