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Connecticut hospital settles Medicare fraud suit

Danbury Hospital of Danbury, Connecticut, has entered into a settlement agreement with the federal government to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program.

The hospital will pay $2.4 million in settlement of charges that it assigned improper billing codes, called diagnostic related group or DRG codes, to patient hospital stays, resulting in excessive reimbursement to the hospital.

The Connecticut U.S. Attorney’s Office issued an October 26, 2006 press release on the settlement.

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