Corporate Compliance

NJ hospital will pay $7.5 million in fraud suit

Compliance Monitor, March 21, 2007

New Jersey-based Raritan Bay Medical Center will pay the federal government $7.5 million to settle Medicare fraud charges, the Department of Justice reports.

The payment will settle three lawsuits filed by whistleblowers under the federal False Claims Act. The suits had charged that between 1998 and 2003, the system's 338-bed hospital in Perth Amboy intentially inflated many inpatient and outpatient charges to make them look like outliers, generating extra reimbursement it wasn't entitled to receive.

The hospital will also enter into a corporate integrity agreement with the OIG as part of the settlement.

View the Department of Justice's news release here.

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