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Thom Mrozek (213) 894-6947 |
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Release No. 07-075
June 7, 2007
LANCASTER COMMUNITY HOSPITAL PAYS $1.2 MILLION TO RESOLVE LAWSUIT ALLEGING OVERPAYMENT BY MEDICARE
Lancaster Community Hospital today paid the United States government $1.2 million to settle allegations that it improperly accounted for physical therapy costs on its Medicare cost reports and subsequently was overpaid by the federal health insurance program.
The settlement resolves allegations made against Lancaster Community in a “whistleblower” lawsuit filed in 2004 by a former employee of Certus Corporation, a consulting firm that assisted hospitals in preparing cost reports that were submitted to Medicare. The lawsuit, which was filed pursuant to the qui tam provisions of the False Claims Act, alleged that Lancaster Community improperly accounted for its physical therapy costs on its annual cost reports to increase its Medicare reimbursement. Lancaster was accused of knowingly receiving overpayments from Medicare for inflated physical therapy costs for fiscal years 1997 through 2001. The lawsuit contended that Lancaster knew of these overpayments and failed to refund them.
Lancaster Community paid the settlement without admitting any wrongdoing.
This case was investigated by the Department of Health and Human Services, Office of Inspector General.
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Release No. 07-075
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