Tobacco Settlement Money Fraud Claims Proceed Against Hospital

Oct. 13, 2021, 1:28 PM

A hospital and health-care systems group can proceed with a suit alleging a Pennsylvania hospital engaged in a fraud scheme to inflate its share of a nearly $56 million tobacco settlement fund, a federal court in the state said.

The group plausibly alleged that Lancaster General Hospital is liable under the civil provisions of the Racketeer Influenced and Corrupt Organizations Act for taking part in fraudulent activity that garnered it over $19 million in reimbursements from 2008 to 2012, the U.S. District Court for the Eastern District of Pennsylvania said.

LGH submitted invalid health-care claims to the Pennsylvania Department of ...

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