Corporate Compliance

St. John's hospitals pay $2.2 million to settle false claims allegations

Compliance Monitor, December 8, 2010

St. John’s Mercy Health System and St. John’s Health System, Inc., agreed to pay $2.2 million to resolve allegations that they inappropriately billed Medicare for routine foot services, according to a Department of Justice (DOJ) press release.

According to the DOJ, several St. John’s locations in Missouri maintained foot clinics that received Medicare payments for routine toenail trimmings and toenail debridements for Medicare beneficiaries from January 1, 2005, to March 31, 2010. Medicare policy states that, absent certain medical conditions, it does not pay for routine foot care services.

St. John’s closed all of its foot clinics as a result of the investigation and settlement.

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