Norton Healthcare, Louisville, Ky., has settled allegations of Medicare overbilling by paying $782,842 to the federal government, prosecutors announced.
Norton Healthcare settles Medicare overbilling allegations for $780,000
The four-hospital healthcare provider was accused of submitting charges for services that were never performed, the U.S. attorney's office said in a statement. The overbilling spanned five years from January 2005 to February 2010, prosecutors said.
The settlement was about twice the overbilled amount, said Stephanie Collins, a spokeswoman for the U.S. attorney's office in Louisville. Prosecutors could have sought up to three times the overbillings, she said. HHS' inspector general's office joined in announcing the settlement.
Norton said the settlement was not an admission to the government's claims. "We determined that our best course of action was to enter into a voluntary settlement and put this matter behind us, which we have now done," Norton Healthcare spokesman Steve Menaugh said in a statement.
Norton, the winner of the 2011NQF Quality Healthcare Award from the National Quality Forum, had revenue of about $1.5 billion in 2010.
Federal prosecutors contended that Norton submitted additional charges to Medicare for outpatient care that included wound care, infusion and radiation oncology services. Specifically, prosecutors claimed that Norton submitted additional charges for separate evaluation and management services that were never performed.
Norton was accused of submitting wrongful claims in violation of the Federal False Claims Act. Collins said the investigation would not result in criminal charges.
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