Monday, August 22, 2005
Westchester County (NY) Hosptial to Pay $2.65 Million to Settle Fraud Claim
Mount Vernon Hospital has agreed to pay $2.65 million to settle a claim that it participated in an illegal Medicaid referral scheme involving kickbacks for patients who sought alcohol and substance abuse services, according to a recent report in The Journal News. The hospital, which did not admit any wrongdoing, agreed to pay back the federal government over the next five years, according to the U.S. Attorney’s Office.
The case, which was brought to the government’s attention by a whistleblower, centered on payments made to Applied CaseManagement Inc. of New York City from 1997 to 2004. The hospital paid the consulting company $60,000 a month to provide administrative services, including patient referrals, for its alcohol and substance abuse treatment program, according to the government. The government alleged that the services were not needed or were worthless and that the hospital was really paying only for patient referrals, something that violates state and federal regulations.
The case came to light after a whistleblower filed a lawsuit under the federal False Claims Act, said David Koenigsberg, a lawyer for the whistleblower. The U.S. Attorney’s Office then decided to open its own investigation into the hospital. The whistleblower, who was identified in government papers as John F. Reilly, who worked for a company affiliated with Applied CaseManagement, will receive $530,000 because the case was successful, Koenigsberg said. The hospital also will be required to pay his legal fees.
For the full story, click here.
Posted by Quitam Help Admin on 08/22 at 06:01 AM
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