Corporate Compliance

MN hospital to pay $846,000 for improper admissions

Compliance Monitor, January 6, 2010

Wheaton Community Hospital and Stanley Gallagher, MD, (collectively WCH) agreed to pay $846,000 to settle allegations that WCH knowingly submitted false claims to Medicare for unreasonable and unnecessary hospital admissions, according to a Department of Justice (DOJ) press release.

According to the DOJ, from 1998 to 2004 WCH, based in Wheaton, MN, admitted patients for acute care who did not meet medically necessary requirements and also kept patients in acute care longer than needed.

Steven Radjenovich, MD, filed the lawsuit under the False Claims Act’s qui tam provision. Radjenovich formerly practiced at Wheaton Community Hospital with Gallagher. He will receive $203,000 of the settlement.

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