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Simi Valley hospital settles Medicare fraud claim

By   /   Wednesday, November 3rd, 2010  /   Comments Off on Simi Valley hospital settles Medicare fraud claim

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Simi Valley Hospital has paid the U.S. government $5.15 million to settle an allegation that the hospital filed false Medicare claims, the Department of Justice announced Nov. 3.

With the settlement finalized, a federal judge dismissed the lawsuit, which was filed in October 2001 by a former hospital employee turned whistleblower.

The suit alleged that between 1991 and 1997, Simi Valley Hospital improperly billed Medicare and Medi-Cal for psychiatric care to ineligible patients, and for $12,000 a month in payments to a medical director to work on a program that did not actually exist.

Simi Valley Hospital paid the settlement without admitting any wrongdoing, the Department of Justice said.

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