Catholic Healthcare Settles Claims
Catholic Healthcare West, which operates 40 hospitals in California, including St. Mary Medical Center in Long Beach and St. Vincent Medical Center in Los Angeles, agreed to pay $10.7 million to settle Justice Department claims that its hospitals illegally charged the government for surgeries conducted with experimental equipment.
Federal prosecutors alleged the surgeries were not covered under Medicare and the health-care provider knew that when it requested reimbursement.
“Taxpayer-funded health insurers have a right and a duty to set responsible limits,” said Stuart Schiffer, assistant attorney general.
Cori MacDonneil, an attorney for San Francisco-based Catholic Healthcare, said the government did not criticize the quality of care the hospitals provided. “The program guidance was not clear, and the settlement reflects only the overpayment plus reasonable interest.”
The settlement stemmed from a whistle-blower suit filed by a former medical device salesman.
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