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Cabrini Medical Center settles FCA suit for $3.4 million

Cabrini Medical Center has agreed to pay $3.4 million to resolve civil charges that it defrauded the New York State Medicaid Program.

The suit, which began as a whistleblower suit brought under the qui tam provisions of the federal False Claims Act, alleged that Cabrini entered into an illegal scheme with Applied Consulting, Inc. Cabrini retained Applied to provide administrative services that were unneeded, not provided, or worthless, in order to cover payments made in exchange for patient referrals. These payments violated Medicaid regulations and state and federal antikickback statutes.

Corporate Crime Reporter ran a March 28, 2007 story on the settlement.

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