Two New York hospitals have agreed to a settlement of more than $2.3 million after an Attorney General investigation found the facilities allegedly overbilled Medicaid for physician-administered drugs.
The Medicaid Fraud Control Unit of New York Attorney General Eric Schneiderman identified the alleged overbilling, which resulted in Sound Shore Medical Center in New Rochelle and Mount Vernon (N.Y.) Hospital receiving a profit of more than $1 million. Both hospitals are part of Sound Shore Health System, based in New Rochelle.
Under New York State law, hospitals and physicians are not permitted to make a profit on the drugs they administer. Hospitals are only to bill Medicaid for the price they paid for injectable drugs, not extra costs of physician administration. The settlement reflects twice the amount of what the hospitals had allegedly defrauded, along with interest.
Tenet Agrees to $42.75M Settlement for Alleged Medicare Overbilling
Universal Health Services Agrees to Pay $6.85M to Settle False Claims Allegations
The Medicaid Fraud Control Unit of New York Attorney General Eric Schneiderman identified the alleged overbilling, which resulted in Sound Shore Medical Center in New Rochelle and Mount Vernon (N.Y.) Hospital receiving a profit of more than $1 million. Both hospitals are part of Sound Shore Health System, based in New Rochelle.
Under New York State law, hospitals and physicians are not permitted to make a profit on the drugs they administer. Hospitals are only to bill Medicaid for the price they paid for injectable drugs, not extra costs of physician administration. The settlement reflects twice the amount of what the hospitals had allegedly defrauded, along with interest.
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Tenet to Receive $84M From CMS in Underpayment SettlementTenet Agrees to $42.75M Settlement for Alleged Medicare Overbilling
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