Towson, Maryland, hospital settles false claims allegations for $4.9 million

by Ben Vernia | February 8th, 2013

On February 7, the Department of Justice announced that St. Joseph’s Medical Center, in the Baltimore suburb of Towson, Maryland, had agreed to pay $4.9 million to resolve allegations that it submitted false claims to Medicare. According to DOJ’s press release:

St. Joseph’s Medical Center, a hospital located in Towson, Md., has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid and other federal healthcare programs, the Justice Department announced today.

This settlement resolves the hospital’s civil liability to the United States under the False Claims Act for the hospital’s disclosure that from 2007-2009 it engaged in a practice of admitting patients to the hospital unnecessarily. In particular, the hospital disclosed that it admitted patients for short stays – typically one or two days – that were not warranted by the patient’s medical condition, and thereby generated a larger reimbursement than was proper for each patient. Of the $4.9 million to be paid by St. Joseph’s, $4.6 million will go the United States, and $152,406 will go to the state of Maryland, which is also a party to the agreement.

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