Corporate Compliance

Cornerstone hospital pays $690,000 to settle false claims case

Compliance Monitor, March 18, 2009

Cornerstone Hospital, of Huntington, WV, has agreed to pay the United States $690,000 to end an investigation into alleged improper billing practices committed by the hospital’s former owners and administrators, according to a Department of Justice (DOJ) press release.
According to the DOJ, Cornerstone allegedly submitted false and fraudulent claims to Medicare in order to obtain improper and enhanced payments.
Two former Cornerstone employees filed the case through the qui tam provision of the False Claims Act, which allows private individuals to file false claims cases on behalf of the United States. The whistleblowers alleged Cornerstone billed for supplies and services not rendered, unbundled services, submitted duplicate claims, billed for supplies and services rendered without a physician's order, billed for supplies and services without regard to medical necessity, and billed for services rendered by unqualified providers.

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