Health Law & Business News

Hospital Chain HMA Pays $260M to Resolve Fraud Cases

Sept. 25, 2018, 11:01 PM

A former hospital chain that merged into Community Health Systems Inc. will pay over $260 million to resolve civil claims and criminal charges related to overbilling Medicare and other government health programs.

The Department of Justice Sept. 25 announced a settlement it reached with Health Management Associates LLC, or HMA, a former U.S. hospital chain based in Naples, Fla., over allegations it falsely billed these programs and provided kickbacks to health-care providers.

The DOJ alleged the chain billed the programs for inpatient services that should have been outpatient or “observation” services, paid doctors for patient referrals, and submitted inflated claims...

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