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Texas hospital district will pay over $15 million to settle qui tam suit

The U.S. Attorney for the Southern District of Texas announced that the Harris County Hospital District will pay $15,449,126 to settle allegations that it violated the False Claims Act by submitting reimbursement claims that did not comply with Medicare and Medicaid requirements.

The suit was originally filed by an employee of the District’s patient billing unit, who alleged that the District submitted claims to the Medicare and Medicaid programs without first seeking reimbursement from primary carriers as required by each program’s rules and regulations. This meant that the government paid claims that should have been paid by other responsible third party insurers. The suit also alleged that the Hospital District improperly submitted claims to Medicare and Medicaid for services provided to incarcerated individuals.

The press release, dated June 5, 2007, can be found on the website of the Office of the U.S. Attorney for the Southern District of Texas. More information about the qui tam case also is posted at the website of Phillips & Cohen LLP, which represented the whistleblower.

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