Like homeowners who clear up liens before selling their property, Lincoln (Neb.) General Hospital paid $99,080 to settle false Medicaid claims charges before its recent sale.
Federal and state agents accused the 211-bed hospital of submitting claims to Nebraska's Medicaid program for adolescent psychiatric care that wasn't supported by medical records.
Formerly a city-owned hospital, Lincoln General was sold in October for $42 million to Bryan Memorial Hospital, a 316-bed private not-for-profit facility also located in Lincoln.
Lincoln General agreed to the billing settlement Aug. 12. The HHS inspector general's office signed off on the settlement July 21, and the U.S. attorney's office in Omaha approved it Aug. 28. MODERN HEALTHCARE obtained a copy last week under the Freedom of Information Act.
Federal officials and the Nebraska Department of Health and Human Services investigated claims submitted by the hospital for patients treated by a single physician in 1992 and 1993. They alleged that the hospital was paid for treating Medicaid patients when their medical records didn't document they had been treated by a psychiatrist at least three times a week, as required by the state.
Lincoln General didn't admit wrongdoing in settling the allegations.