Cooper University Hospital in Camden, N.J., has agreed to pay the United States $3.85 million to settle allegations that it defrauded Medicare, the Justice Department announced on September 24, 2008.

The suit was brought by a whistleblower, Anthony Kite, who was represented by Larry P. Zoglin of Phillips & Cohen.

From 2001 to 2003, Mr. Kite said, Cooper Hospital submitted reimbursement claims to Medicare that inflated its actual treatment costs so that the hospital qualified on paper for outlier payments. As a result, the hospital received millions of dollars in outlier payments that it wasn’t entitled to receive.

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