New Jersey hospital nearly, almost, but not quite pays $9 million to settle whistleblower's suit

by Ben Vernia | June 22nd, 2012

On June 21, the Department of Justice announced that a Morristown, New Jersey hospital and its owner have agreed to pay a suspiciously-just-short-of-$9 million settlement to partially resolve allegations brought in a qui tam suit. According to DOJ’s press release:

AHS Hospital Corp., Atlantic Health System Inc., and Overlook Hospital, located in New Jersey, have agreed to pay the United States $8,999,999 to settle allegations that they violated the False Claims Act, the Justice Department announced today.

The settlement resolves allegations that Overlook Hospital, owned and operated by AHS Hospital Corporation, and Atlantic Health Systems Inc., overbilled Medicare for patients who were treated on an inpatient basis when they should have been treated as either observation patients or on an outpatient basis.

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