Cleveland Clinic Florida Hospital has paid the United States $2.75 million to settle allegations the hospital billed Medicare for observation services for patients who did not qualify for the reimbursement. In particular, the settlement resolved allegations Cleveland Clinic frequently billed Medicare for extra observation charges during normal recovery periods following minor surgery or emergency room visits.
The suit was the result of a qui tam whistleblower complaint filed by a former employee under the False Claims Act. The whistleblower will receive approximately $500,000 for his role in the case.
The South Florida Business Journal ran a February 14, 2005 story on the settlement.