US Hospital Chain to Pay Multi-Million Dollar Fine to Government for Fraud

Published December 15th, 2000 - 02:00 GMT
Al Bawaba
Al Bawaba

A hospital chain has agreed to pay 840 million dollars in the largest fraud settlement ever obtained by the US government, the Justice Department said Thursday.  

Under a civil settlement, the Healthcare Company (HCA), formerly known as Columbia/HCA, will pay 745 million dollars plus interest for alleged false billing practices, and 95 million dollars in criminal charges, a Justice Department statement said. 

The company had overcharged the government for its services and obtained payments for services never performed, according to the statement. 

"Health care fraud impacts every American citizen. When a company defrauds our nation's health care programs, it takes money out of the America taxpayer's pocket. This is wrong," US Attorney General Janet Reno was quoted as saying. 

Two of subsidiaries of HCA -- the largest hospital chain in the United States, according to the statement -- have also agreed to plead guilty to criminal charges including fraudulent billing to Medicare, the federal health care system for the aged and needy, and several government agencies -- WASHINGTON (AFP)  

 

 

© 2000 Al Bawaba (www.albawaba.com)

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