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University faces $35 million medicare fine

SEATTLE, April 17 (UPI) -- The University of Washington reportedly failed to heed years of federal warnings and now faces a record $35 million civil penalty for Medicare overbilling

The Seattle Post-Intelligencer reported Saturday quoted a federal official involved in the investigation as saying the university overbilled the government "well in excess of $100 million" from 1991 to 2001. The newspaper report said the university failed to heed federal warnings and implement reforms until a fraud investigation was in full throttle.

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Many of the instances of overbilling apparently occurred after teaching hospitals in the United States were notified that a major crackdown was under way. Yet the Post-Intelligencer said the University of Washington did not adopt rigorous safeguards to ensure against overbilling until federal agents arrived on the Seattle campus in November of 1999.

University officials insisted Friday the overbilling did not top $100 million, claiming the actual amount was much less.

But the newspaper source said the government demonstrated during a recent mediation conference that it could prove more than $100 million in overbilling.

To settle the case, the university regents are expected next week to accept the $35 million penalty.

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