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Medicare Fraud

Phillipsburg, NJ: (Dec-10-07) The federal government filed charges against Warren Hospital of Phillipsburg, alleging that the facility bilked the government by inflating costs on Medicare claims. The suit claimed that Warren inflated Medicare charges to receive payments it wasn't entitled to between January 1998 and August 2003. The US Department of Justice stated that patients under such care are called "outliers" because their needs stretch beyond typical parameters of the program.

Typically, treatments for such patients are paid for through supplements to payments to hospitals for standard care. Outlier payments are easy to manipulate, prosecutors say, because they tend to be complicated and subjective. As part of a settlement reached, Warren Hospital agreed to a $7.5 million payout to resolve allegations. Warren's payment comes 18 months after Saint Barnabas Health Care System, the state's largest medical network, agreed to pay $265 million in a first-of-its-kind agreement to settle similar charges.

[NJ.COM] Warren Hospital to pay $7.5M to settle Medicare fraud case


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Published on Dec-12-07


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