DOD health contractors rack up more than $100M in excess payments, DOJ alleges

Six health centers that contracted with the Department of Defense (DOD), intentionally overbilled the government for more than $100 million, the Department of Justice (DOJ) alleged in announcing a settlement with one of the plans.

The six plans, which includes The Johns Hopkins Medical Services Corporation and SVCMC Inc., formerly known as St. Vincents Catholic Medical Centers of New York, provide healthcare to active and retired military personnel and their families through the Uniformed Services Family Health Plan. The DOJ has reached a $29 million settlement with SVCMC and it is pursuing claims against the other five.

In 2012, SVCMC noticed that the government had made a mistake and labeled their patients as sicker than they actually were, resulting in a higher reimbursement rate, the DOJ said.