The St. Louis Post Dispatch has reported that Mercy Hospital (formerly St. John’s Mercy Medical Center) has settled a Justice Department investigation by agreeing to pay $365,000.
The settlement resolves allegations that Mercy overcharged Medicare between 2000 and 2008 for performing kyphoplasty, a minimally-invasive procure to treat certain spinal fractures. The allegation was that the hospital’s unnecessarily extended the patient’s stays in order to increase the recovery from Medicare. The DOJ brought the charges under the False Claims Act.
Mercy was 1 of 14 hospitals around the nation that settled with DOJ over the practice.
Since Attorney General Eric Holder and Secretary of HHS Kathleen Sebelius created an initiative to jointly pursue investigations to reduce and prevent Medicare and Medicaid Fraud in May 2009, the U.S. Government has recovered $6.6 billion in cases involving Medicare and Medicaid Fraud, mostly from hospitals and large medical care providers.