Beth Israel Hospital will pay the federal government $13 million for fraudulently inflating bills to Medicare, in a settlement that provides a rare glimpse into financial decision-making among hospital executives.
Federal prosecutors alleged that Beth Israel abused a system of “outlier payments” that lets hospitals bill Medicare — the healthcare system for the elderly — at higher rates for cases that might look routine on paper, but in fact are more complicated and expensive than usual. The criminal complaint suggests this billing practice wasn’t for outliers at all, but was a normal practice at the Manhattan-based hospital between 1998 and 2003.
Source: Feds Dock Beth Israel $13M for ‘Turbocharging’ Medicare (WNYC News)