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Pennsylvania Health Network Accuses Hospital of Running Racket

June 20, 2018, 8:52 PM

A large Pennsylvania hospital network is invoking a statute intended to deal with organized crime in claiming another hospital fraudulently took state money that should have gone to the network.

St. Luke’s Health Network, based in Bethlehem, Pa., alleged in a complaint that Lancaster General Hospital, a member of the University of Pennsylvania Health System located in Lancaster, Pa., fraudulently duped state officials into sending it millions of dollars from a state fund for charity medical care.

St. Luke’s alleged that from fiscal years 2008 to 2012, Lancaster General and two employees submitted hundreds of false claims to Pennsylvania’s Extraordinary...

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