Hospital Admits to Having Selectively Increased Charges to Generate More Medicare Reimbursements Than It Would Have Otherwise Received
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a civil health care False Claims Act lawsuit against the BETH ISRAEL MEDICAL CENTER (“BETH ISRAEL”) for fraudulently inflating its fees for services provided to Medicare patients in order to obtain larger supplemental reimbursement, known as “outlier payments,” that Medicare pays to hospitals and other health care providers in cases where the cost of care is unusually high. In the settlement, BETH ISRAEL admitted, acknowledged, and accepted responsibility for having selectively increased its charges to obtain more outlier payments than it would have otherwise received. BETH ISRAEL also agreed to pay $13,031,355 to the United States to settle the Government’s claims for damages and penalties under the False Claims Act. The settlement was approved yesterday by United States District Court Judge Naomi Reice Buchwald.