Hospital Chain Ends Fraud Case

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http://www.nytimes.com/2002/12/19/business/19HCA.html?tntemail0

Hospital Chain Ends Fraud Case

By THE ASSOCIATED PRESS

NASHVILLE, Dec. 18 (AP) — HCA, the nation's largest for-profit hospital chain, announced a settlement with the Justice Department of more than $880 million today to end a nine-year investigation into allegations of fraud.

The settlement, which requires formal approval by the Justice Department and courts, would raise the amount of civil fines and criminal penalties HCA has paid the government in recent years to $1.7 billion.


 

HCA had previously pleaded guilty to defrauding government health care programs.

In the cases covered by the settlement, whistle-blowers charged HCA filed false claims and paid kickbacks to doctors so they would refer Medicare and Medicaid patients to its operations.

The government has not detailed how the money will be divided or how much will go to the whistle-blowers.

Under the settlement agreement, HCA would pay the Justice Department $630 million and the government would end its investigation.

Previously, HCA agreed to pay $250 million to resolve nonrelated outstanding Medicare cost report issues.
 

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