Four-hospital Inova Health System, Falls Church, Va., agreed to pay $713,000 to settle allegations that 160-bed Inova Fair Oaks Hospital, Fairfax, Va., violated federal law by leasing office space to physicians at below-market rates from 1998 to 2004. Inova said its compliance program uncovered questionable subleases by Inova Fair Oaks involving "a small number of physicians" and reported the arrangements to HHS' inspector general's office. In other legal news, 161-bed Henrietta D. Goodall Hospital, Sanford, Maine, agreed to pay $110,000 to resolve federal False Claims Act allegations that it improperly billed for some outpatient services from 2000 to 2002. HHS also alleged that Goodall improperly accounted for some funds that should have been returned to Medicare and Medicaid. "Based on internal reviews, we were the first to discover this error and self-reported it to the government," a hospital spokesman said. "It is important to note that no suggestion of wrongdoing has been made." The spokesman said that new technology and compliance program standards would prevent future errors. -- by Mark Taylor
Va., Maine hospitals settle separate cases with HHS
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