The U.S. Justice Department will pursue False Claims Act allegations against three New Jersey hospitals that whistle-blowers implicated in schemes to increase Medicare outlier payments by inflating charges, according to a Justice Department news release.
The targeted hospitals are 218-bed Robert Wood Johnson University Hospital at Hamilton, 163-bed Barnert Hospital in Patterson and 278-bed Bayonne (N.J.) Hospital, the latter two of which have filed for Chapter 11 bankruptcy protection.
The government's investigation was triggered by the same whistle-blowers who filed lawsuits leading to large settlements with Dallas-based Tenet Healthcare Corp. and St. Barnabas Health Care System, based in West Orange, N.J., over alleged outlier fraud.
None of the three New Jersey hospitals returned calls seeking comment at deadline. -- by Gregg Blesch
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