6 Recent Lawsuits Involving Hospitals

1. Lifespan Hospital Group to Pay Boston's Tufts Medical Center $14.2M for Misconduct
A federal District Court judge has ordered Lifespan hospital group to pay $14.2 million to Tufts Medical Center in Boston for Lifespan's misconduct dating back to 2002. Providence, R.I.-based Lifespan merged with Tufts, then known as Tufts New England Medical Center, in 1997 and the two parted in 2002. According to a May 24 ruling by Judge Joseph N. Laplante, Lifespan pushed Tufts into a risky financial agreement without disclosing its then-CFO had a close, longstanding relationship with the Morgan Stanley broker who handled the transaction. Tufts originally sought $135 million from Lifespan.

2. Pennsylvania's Divine Providence Attributes Billing Errors to Misunderstanding of Medicare Language
Divine Providence Hospital in Williamsport, Pa., has agreed to pay the federal government $598,965 to resolve allegations of improper Medicare claims. The payment will settle allegations that, from Jan. 2004-Dec. 2007, the hospital erroneously submitted Medicare payment claims that contained evaluation and management services not allowable under Medicare. A spokesperson from Williamsport-based Susquehanna Health, the hospital's parent company, attributed the errors to a "good-faith" interpretation of Medicare's regulatory language.

3. Employees From Florida's Memorial Hospitals Charged In Kickback Scheme With Vendors
A largescale kickback scheme allegedly occurred at two hospitals within the Hollywood, Fla.-based Memorial Healthcare System. Adil Osman, Elliot Gordon and Anthony Merola have been charged for taking kickbacks from vendors.  Adil Osman, former director of facilities management at Memorial Hospital West in Pembroke Pines, Fla., allegedly selected companies in exchange for cash and home improvements, such as a $12,000 electric generator and $3,625 for a swimming pool. Mr. Gordon and Mr. Merola, former employees of Memorial Regional Hospital in Hollywood, pleaded guilty to a similar kickback scheme with vendors.

4. Allegations of Overbilling, Kickbacks at Florida's Halifax Health Move Forward
A motion for dismissal was denied by a U.S. district court judge earlier this month, allowing a whistleblower case accusing Daytona Beach, Fla.-based Halifax Health Medical Center of Medicare fraud and kickbacks to continue. The lawsuit claims Halifax inappropriately admitted patients, billed Medicare for their services and allegedly had financial relationships with physicians in violation of federal anti-kickback laws. U.S. District Court Judge Gregory A. Presnell found Halifax failed to prove the allegations weren't specific enough in its motion to dismiss.

5. 2005 Whistleblower Suit Against IASIS Healthcare Alleging Kickbacks is Dismissed
A whistleblower's complaint against Franklin, Tenn.-based IASIS Healthcare, which claimed the 19-hospital system paid kickbacks in exchange for referrals, was been dismissed by a federal judge in Arizona earlier this month. U.S. District Judge Robert Clive Jones rejected the complaint from Jerre Frazier, former vice president of ethics and compliance for IASIS. Mr. Frazier filed the complaint in March 2005, claiming the system performed unnecessary medical procedures and illegally paid physicians for patient referrals to pad profits.

6. California Jury Finds Financial, Management Failures at Corcoran District Hospital

A grand jury from California's Kings County has alleged 32-bed Corcoran (Calif.) District Hospital used construction-earmarked $12.6 million bond money for expenses other than construction. The hospital originally received $18 million in bond money for construction of a new hospital. According to the jury's report, in 2006 the hospital spent $291,000 of the construction bond money on hospital operating expenses. In addition, some employees received pay raises. The grand jury also alleged the hospital had a conflict of interest issue, lacked transparency and violated the state's open-meeting law.

Related Articles on Healthcare Fraud:
5 Recent Fraud Cases Involving Healthcare CEOs
12 Fraud and False Claims Cases Involving Physicians
10 Recent Stark, False Claims and Kickback Lawsuits Involving Hospitals and Health Systems


Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars