Corporate Compliance

DOJ settles fraud allegations against NJ hospital, intervenes in case against NY hospital

Compliance Monitor, November 25, 2009

The Department of Justice (DOJ) settled a Medicare fraud lawsuit against a New Jersey hospital for $3.02 million, according to a DOJ press release. The DOJ also filed a motion to intervene in a Medicare fraud lawsuit against a New York hospital.
 
Trinitas Regional Medical Center (Trinitas) located in New Jersey and Brookhaven Memorial Hospital in New York face allegations of inflating charges to obtain supplemental outlier payments for cases that were not extraordinarily costly and for cases in which outlier payment was unnecessary.  
 
Whistleblower Tony Kite filed a suit against both hospitals under the qui tam provisions of the False Claims Act in 2005. Kite will receive approximately $679,000.

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