facebook
twitter
rss
account
search
search
 

55 hospitals reach $34 million settlement for billing fraud

July 2, 2013 at 1:07 PM   |   Comments

BUFFALO, N.Y., July 2 (UPI) -- Fifty-five U.S. hospitals will pay $34 million to settle charges of fraudulently billing Medicare for routine procedures, a lawyer for two whistle-blowers said.

"This isn't a case of simple paperwork errors or innocent misunderstanding of Medicare rules," said Tim McCormack, an attorney with Phillips & Cohen LLP, a Washington law form that represented whistle-blowers who told authorities about the billing practices for kyphoplasty, which is generally a one-day, outpatient procedure.

The whistle-blowers, former employees of Kyphon -- which makes equipment used in the procedure -- said the company sold the product in part by showing hospitals how to bill for kyphoplasty as if it required hospital stays.

Kyphon has been purchased by Medtronic Spine LLC, which paid $75 million to settle claims based on the overbilling scheme.

In total, the government has negotiated $149 million in settlements based on the Kyphon scheme.

The whistle-blowers, Craig Patrick and Chuck Bates, are entitled to between 15 percent and 25 percent of the settlement, the law firm said.

The most recent settlement involves hospitals located in Alabama, California, Delaware, Florida, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi, Missouri, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Tennessee and Texas.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
4
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
5
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
Trending News
Around the Web
x
Feedback