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Texas Hospital to Pay U.S. Nearly $1 Million for Allegations it Violated the False Claims Act

By Nolan and Auerbach

Arlington Memorial Hospital, Arlington, Texas, has agreed to pay the U.S. $990,509.50 to resolve allegations that it violated the civil False Claims Act, according to a Jan. 4, 2010 announcement by U.S. Attorney James T. Jacks of the Northern District of Texas.

The Texas hospital allegedly violated the civil False Claims Act by submitting improper claims for payment to the Medicare program between July 1, 2003, and July 1, 2007, for pulmonology-related items and services.

In August 2007, Arlington Memorial’s corporate parent self-disclosed to the Office of Inspector General for the Department of Health and Human Services (OIG) that a long-standing contract with a physician group for the interpretation of arterial blood gas (ABG) tests potentially violated federal law. The U.S. contends that Arlington Memorial Hospital knowingly failed, through the actions of its former president, to eliminate payments to the group for the interpretations of hospital tests that were not performed, and that Arlington Memorial Hospital AMH knew such payments were not in compliance with federal legal requirements, according to the U.S. Department of Justice press release.

For the full release, go to: http://www.justice.gov/usao/txn/PressRel10/arlington_memorial_hospital_settle_pr.html.

For more information about qui tam law and health care fraud, contact Nolan and Auerbach, PA.

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Full post as published by Medicare Fraud 101 on January 07, 2010 (boomark / email).