Brookhaven Memorial Hospital Medical Center, Patchogue, N.Y., agreed to pay the U.S. $2.9 million to resolve alleged abuse of Medicare's outlier program, the U.S. Justice Department announced.
N.Y. hospital settles False Claims allegations
The agreement stipulates the 345-bed hospital does not admit liability. The government's investigation was triggered by a whistle-blower lawsuit filed under the False Claims Act in 2005 that has led to settlements with several other hospitals and systems. The government alleges that Brookhaven inflated its inpatient and outpatient charges from 2002 to 2003 in order to secure a higher share of Medicare outlier payments, which are intended to reimburse hospitals for unusually expensive care.
“Brookhaven increased its charges as permitted by law in order to cover rising costs for providing care and to maintain the quality of patient care,” the hospital said in a news release.
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