United States Attorney's Office District of Connecticut
Press Release

MANCHESTER MEMORIAL HOSPITAL ENTERS INTO $712,166 FEDERAL CIVIL SETTLEMENT AGREEMENT

Nora Dannehy, Acting United States Attorney for the District of Connecticut, today announced that MANCHESTER MEMORIAL HOSPITAL, located at 71 Haynes Street, Manchester, Connecticut, has entered into a civil settlement agreement with the Government in which it will pay $712,166 to resolve allegations that it violated the False Claims Act.

Acting U.S. Attorney Dannehy explained that the allegations against MANCHESTER MEMORIAL HOSPITAL involved charges to Medicare for infusion therapy and chemotherapy administration services.  During the time period at issue, Medicare allowed payment for one unit of infusion therapy and chemotherapy administration per patient visit.  However, on many occasions, MANCHESTER MEMORIAL HOSPITAL billed Medicare for multiple units of these services.  Instead of billing for one unit per patient visit, MANCHESTER MEMORIAL HOSPITAL often billed Medicare for between two and nine units.

To resolve its liability under the False Claims Act, MANCHESTER MEMORIAL HOSPITAL will pay double damages, in the amount of $712,166, in order to reimburse the Medicare program for conduct occurring between August 1, 2000 and December 31, 2004.  The False Claims Act provides for treble damages and penalties of $5,500 to $11,000 per false claim submitted to the Government.

“Billing for inflated charges relating to chemotherapy and infusion services siphons critical resources away from the Medicare program, which relies on hospitals to bill Medicare honestly and accurately,” Acting U.S. Attorney Dannehy stated.  “Health care fraud is a national problem that the United States Attorney’s Office is devoted to combating.”

In entering into the civil settlement agreement, MANCHESTER MEMORIAL  HOSPITAL did not admit liability.

This case was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Richard M. Molot, along with Auditor Kevin A. Saunders.

People who suspect health care fraud are encouraged to report it by calling the Health Care Fraud Task Force at (203) 785-9270 or 1-800-HHS-TIPS.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov