Illinois hospital to pay $292K to settle allegations it kept overpayments from insurers

Gibson Area Hospital in Gibson City, Ill., will pay $292,000 to resolve allegations that it failed to return overpayments from government insurers in violation of the False Claims Act, according to WAND TV.

Prosecutors allege the hospital knowingly retained overpayments that were under $10, more than one year old or duplicate payments. Additionally prosecutors said the hospital kept overpayments if the payer didn't request a refund more than three times.

The alleged actions took place between March 2014 and March 2020. 

The federal government will get about $208,000 from the settlement and Illinois will get about $84,000.

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