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California hospital settles qui tam suit for over $2 million

Loma Linda Behavioral Medicine Center has paid the government more than $2 million to settle allegations that it fraudulently overbilled Medicare and Medi-Cal, the state Medicaid program.

The suit originated as a whistleblower case filed by Mark Razin, a former employee of Healthcare Financial Advisors. HFA is a consulting company that assists hospitals in preparing cost reports. The suit alleged that Loma Linda filed cost reports prepared by HFA that sought reimbursement for unallowable costs.

This is the latest in a string of settlements by former clients of HFA. Information on other settlements, by Lovelace Health System, Jackson Memorial Hospital, Eisenhower Medical Center, St. Elizabeth Regional Medical Center, and St. Joseph’s Hospital in Houston, is available at the website of Phillips & Cohen, the law firm that represented Mr. Razin.

Corporate Crime Reporter ran an article on the settlement on April 25, 2007.

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