St. Helena (Calif.) Hospital has agreed to shell out $2.25 million to settle allegations it violated the federal False Claims Act, according to the Department of Justice.
The lawsuit claims between January 2008 and July 2011, the hospital charged Medicare for angioplasty operations that were not medically necessary. The lawsuit further alleges the hospital unnecessarily admitted instead of treating them on a less costly outpatient basis, according to the DOJ.
The lawsuit was filed under the qui tam,or whistle-blower, provision of the False Claims Act by Kacie Carroll, a former hospital employee. Ms. Carroll will receive $450,000 from the settlement, according to the report.
Although St. Helena Hospital agreed to this settlement, there has been no admission of wrongdoing in this case.