Tuesday, December 11, 2007

New Jersey Hospital Pays $7.5 Million for Medicare Fraud

Warren Hospital of  Phillipsburg, New Jersey, agreed to pay $7.5 million to the government for Medicare fraud. DOJ alleged that “Warren purposefully inflated charges for inpatient and outpatient care to make these cases appear more costly than they actually were, and thereby obtained outlier payments from Medicare that it was not entitled to receive.” Warren also was accused of violating the Stark laws “by submitting claims for Medicare patients referred by physicians with whom it had a unlawful financial relationship.” http://www.usdoj.gov/usao/nj/press/press/files/pdffiles/warr1210rel.pdf  

Two whistleblowers shared $1.2 million, or 16% of the recovery.