City hospital pays $15.4 million to settle claims under the False Claims Act
$15.4 million was recently paid by a city hospital to resolve both state and federal claims against it. The lawsuit, brought by the government, alleged violations of the False Claims Act, stating that the hospital conspired to increase Medicare bills by paying physicians kickbacks to steer patients to the facility, where they frequency received unnecessary treatment. One of the defendants was a party to a $14 million settlement for a similar scheme he ran at a Chicago facility involving Chicago medical malpractice and Medicare fraud.
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