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Community Health paying $98M to settle US claims

Published on NewsOK Modified: August 4, 2014 at 6:46 pm •  Published: August 4, 2014
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FRANKLIN, Tenn. (AP) — Community Health Systems Inc. has agreed to pay $98 million to settle federal claims of improper billing by the hospital company.

The Justice Department and Community Health announced the settlement Monday. The government alleges that the company admitted patients to the hospital when it wasn't medically necessary and then billed Medicare, Medicaid and the military's Tricare program for those inpatient services. Community Health should have billed for less costly outpatient or observation cases, the government said

Franklin, Tennessee-based Community Health said there is no finding of improper conduct under the settlement and denied any wrongdoing.

Community Health said it previously set aside $102 million to cover the settlement and its related legal costs.

The settlement includes $9 million for similar alleged violations at Laredo Medical Center in Texas. It also cited improper billing of Medicare for services referred to the hospital by a doctor who was offered a director's position there.

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