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U.S. intervenes in whistleblower suits against NJ hospitals

By Qui Tam

The federal government has intervened in two whistleblower lawsuits alleging Medicare fraud against three New Jersey hospitals, according to an AP story published January 25, 2008 in Forbes. The hospitals named in the suits are Robert Wood Johnson University Hospital, Barnert Hospital and Bayonne Medical Center.

The suits, filed under the qui tam provisions of the federal False Claims Act, allege the three hospitals fraudulently inflated bills they submitted to Medicare. The Dept. of Justice press release states that this inflation led to enhanced reimbursement through the "outlier payment" program, designed to compensate hospitals and other health care providers in cases where the cost of care is unusually high.

Both Barnert Hospital and Bayonne Medical Center have filed for bankruptcy protection.

Full post as published by False Claims Act - Qui Tam on January 28, 2008 (boomark / email).