2002-07-18 -- Hackensack University Medical Center -- Settlement -- News Release

Hackensack University Medical Center Pays $4.2 Million to Settle Medicare Overbilling

NEWARK - The government and Hackensack University Medical Center today entered into a $4.2 million settlement of claims in connection with the Medical Center's disclosure that it had overbilled Medicare, Acting U.S. Attorney Ralph J. Marra Jr. announced.

In early 2000, the Medical Center disclosed to the government that it had substantially overbilled the Medicare program from 1993 to 1999 on inpatient pneumonia cases it had treated, according to Assistant U.S. Attorney Michael A. Chagares.

Following the Medical Center's disclosure, the government conducted an investigation, which led to the settlement.

"A voluntary settlement is in the best interests of the Medical Center and the United States," Marra said. "The Medicare program receives the reimbursement it is owed, and a well-regarded medical center avoids potentially harsher sanctions. This is the kind of corporate behavior we want to encourage."

As part of the settlement, the government is refraining from seeking triple damages and other penalties, which are possible remedies in cases where false Medicare and other claims for payment are made to the government, according to Chagares.

The Settlement Agreement notes that the Medical Center does not admit that its actions violated the law.

The precise settlement amount - $4,228,731 - must be paid by the Medical Center within 10 days, according to Chagares.

The Government is represented by Chagares, chief of the U.S. Attorney's Civil Division in Newark.

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Defense Counsel: James V. Hetzel Bernards Township