Healthcare Service Provider to Pay $60 Million to Settle Medicare and Medicaid False Claims
https://www.justice.gov/usao-ndil/pr/healthcare-service-provider-pay-60-million-settle-medicare-and-medicaid-false-claims
Department of Justice
U.S. Attorneys Office
Northern District of Illinois
FOR IMMEDIATE RELEASE
Monday, February 6, 2017
Healthcare Service Provider to Pay $60 Million to Settle Medicare and Medicaid False Claims Act Allegations
WASHINGTON A major U.S. hospital service provider, TeamHealth Holdings, as successor in interest to IPC Healthcare Inc., f/k/a IPC The Hospitalists Inc. (IPC), has agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed (a practice known as up-coding), the Department of Justice announced today. Under the settlement agreement, TeamHealth has agreed to pay $60 million, plus interest.
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The government contended that IPC knowingly and systematically encouraged false billings by its hospitalists, who are medical professionals whose primary focus is the medical care of hospitalized patients. Specifically, the government alleged that IPC encouraged its hospitalists to bill for a higher level of service than actually provided. IPCs scheme to improperly maximize billings allegedly included corporate pressure on hospitalists with lower billing levels to catch up to their peers.
As part of the settlement, TeamHealth entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) covering the companys hospital medicine division. This CIA is designed to increase TeamHealths accountability and transparency so that the company will avoid or promptly detect future fraud and abuse.
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The settlement resolves allegations filed in a lawsuit by Dr. Bijan Oughatiyan, a physician formerly employed by IPC as a hospitalist. The lawsuit was filed in a federal court in Chicago, Illinois, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Oughatiyan will receive approximately $11.4 million.
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