Tucson, Ariz.-based Carondelet Health Network has agreed to pay the government $35 million to resolve allegations its hospitals acted in violation of the False Claims Act by submitting fraudulent claims to government-run programs for reimbursement, according to the Department of Justice.
The settlement resolves allegations that Carondelet St. Mary's Hospital and Carondelet St. Joseph's Hospital, both located in Tucson, billed Medicare, the Federal Employees Health Benefit Program and the Arizona Health Care Cost Containment System — Arizona's Medicaid program —for services that were not reimbursable.
The lawsuit was originally filed under the qui tam, or whistle-blower, provision of the False Claims Act.
"This settlement is the largest-ever False Claims Act recovery in Arizona, and it reflects the longstanding and ongoing efforts of our office to guard the vital but limited funding of federal healthcare programs," said John S. Leonard, U.S. Attorney for the District of Arizona.
Although Carondelet has entered into this settlement, the agreement is not an admission of liability.
A copy of the settlement agreement can be found here.
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