Two New Jersey hospitals’ parent company to pay $7.95 million in False Claims Act settlement

by bvernia | January 1st, 2010

DOJ announced on December 15 a settlement by Our Lady of Lourdes Health Care Services, Inc., the owner of two New Jersey hospitals – Our Lady of Lourdes Medical Center in Camden, and Lourdes Medical Center of Burlington County in Willingboro – to False Claims Act allegations initially brought by a qui tam whistleblower.
In the 2005 suit, the relator, Tony Kite, alleged that the hospitals inflated their charges to obtain outlier payments. Medicare makes supplemental outlier payments to providers where the cost of care is unusually high. The relator will receive $365,000 for his share of the total $7.95 million recovery.

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