New York Hospital Pays $13.4 million in Medicare/Medicaid Fraud


On September 5, 2012, The New York Daily News reported that a New York hospital will pay $7.56 million to the state and $5.84 million to the federal government to settle a lawsuit alleging fraudulent Medicare and Medicaid programs

The Brooklyn U.S. attorney’s office and office of New York State Attorney found in a joint investigation that New York Downtown Hospital had filed false reimbursement claims to Medicare and Medicaid for services related to a scheme with an out-of-state vendor to operate a detox program at the hospital in lower Manhattan.The out-of-state vendor received a monthly fee from the hospital for referrals to a detox program that the vendor was not licensed to operate.Such kickbacks are illegal under state anti-kickback laws.