Shands Healthcare in Gainesville, Fla., has agreed to a $26.2 million settlement to resolve allegations of overbilling state and federal health programs.
The whistle-blower suit, filed in 2008 under the False Claims Act by a former hospital contractor, claims the health system billed Medicare, Medicaid and TRICARE for inpatient claims that should have been billed as less expensive outpatient claims.
UF Shands Hospital in Gainesville and UF Health Jacksonville (Fla.), both run by Shands in conjunction with the University of Florida, were implicated in the suit. Shands Jacksonville will pay $6.8 million of the settlement, and UF Health Jacksonville will pay $19.4 million.
Shands has not admitted liability as part of the settlement.
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