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457 Hospitals to Pay $250M in False Claims Act Case

Jaclyn Jaeger | October 30, 2015

The Department of Justice today reached 70 settlements totaling more than $250 million involving 457 hospitals in 43 states to resolve allegations that these hospitals implanted cardiac devices in Medicare patients in violation of Medicare coverage requirements.

“In terms of the number of defendants, this is one of the largest whistleblower lawsuits in the United States and represents one of this office’s most significant recoveries to date,” said U.S. Attorney Wifredo Ferrer of the Southern District of Florida. “Our office will continue to vigilantly protect the Medicare program from potential false billing claims.”

Medicare coverage for the cardiac device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD). Only patients with...

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