New York Downtown Hospital has agreed to pay $13.4 million to settle claims that it fraudulently billed Medicaid for unlicensed and unnecessary inpatient drug and alcohol treatment services.
The settlement also resolves allegations that the lower Manhattan hospital conspired with vendor SpecialCare Hospital Management Corp., St. Louis, to submit false claims to Medicaid under an illegal “administrative services agreement.”
“The hospital has made no admission of liability and this is reflected in the settlement with the government,” a spokesman for the hospital said in an e-mail. “The current leadership is pleased to get these allegations—which date back over 10 years—behind us. The hospital can now focus its efforts on continuing to provide the highest quality healthcare to the downtown community."