Mississippi hospital to pay $1.1M to settle fraud case in Little Rock

*CORRECTION: Grenada County, Miss., which owned Grenada Lakes Medical Center in Grenada, Miss., will pay more than $1.1 million to settle a lawsuit in federal court in Little Rock alleging that the hospital billed Medicare for phony group psychotherapy sessions, county Chancery Clerk Johnny Hayward said. The University of Mississippi Medical Center, which took over the hospital in 2014, was not involved in the settlement, Hayward said. According to a news release from the U.S. Department of Justice, the claims at issue were submitted from January 2005 through April 2013. This story was unclear about which entity was involved in the settlement and the hospital’s status when the claims were submitted.

A Mississippi county has agreed to pay more than $1.1 million to settle a lawsuit in federal court in Little Rock alleging that a hospital it owned billed Medicare for phony group psychotherapy sessions, the U.S. Department of Justice announced Monday.

The Grenada Lakes Medical Center, now the University of Mississippi Medical Center Grenada, was accused of submitting the claims from January 2005 through April 2013 for services provided by Allegiance Health Management of Shreveport, according to a Justice Department news release.

The lawsuit was filed in Little Rock in 2010 by Ryan Ladner, a former program manager for Allegiance in Mississippi, under the False Claims Act, which allows private parties to file suit on behalf of the government and share a portion of money recovered.

The lawsuit accused hospitals in Arkansas and several other states of billing Medicare for therapy sessions at Allegiance clinics that weren't medically necessary and involved patients watching television or playing games.

Allegiance and four of its hospitals, including North Metro Medical Center in Jacksonville, agreed to pay $1.7 million as part of a separate settlement announced in the case in June.

"Hospitals that participate in the Medicare program are responsible for ensuring that the services performed at their facilities or on their behalf reflect the medical needs of patients rather than the desire to maximize profit," acting Assistant Attorney General Chad Readler said in the news release. "The Department of Justice will continue to hold accountable those who misspend taxpayer funds by providing medically inappropriate services."

Health Management Associates and 14 hospitals that it had owned, including the former Southwest Regional Medical Center in Little Rock and Sparks Medical Center-Van Buren, agreed to pay $15 million to resolve allegations in the same lawsuit in 2015.

The Little Rock hospital closed in 2008 and then was purchased by Baptist Health. Community Health Systems of Brentwood, Tenn., bought Health Management Associates in 2014.

Metro on 08/08/2018

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