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NY hospitals accused of drug rehab fraud

By Phillips & Cohen LLP

Seven hospitals in New York state allegedly defrauded Medicaid of $50 million in connection with drug treatment programs.

Both the New York State Attorney General and the U.S. Attorney's Office in Brooklyn have filed suits alleging that the hospitals admitted patients who weren't addicts into unlicensed treatment programs, paid kickbacks for referrals, and lured homeless people into medical beds with beer.

The hospitals involved are Columbia Memorial Physicians Hospital Organization Inc. in Hudson; Long Beach Medical Center; New York Downtown Hospital; St. Joseph's Medical Center in Yonkers; Queens' Parkway Hospital; the former Our Lady of Mercy in the Bronx; and Benedictine Hospital in Kingston.
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Full post as published by False Claims Act - Qui Tam on January 12, 2009 (boomark / email).