2002-06-17 -- Saint Clare's Health Services -- Settlement Agreement -- News Release

Saint Clare's Health Services Agrees to Pay More Than $1 Million to Settle Medicare Overbilling Allegations

NEWARK - Saint Clare's Health Services, a multi-campus healthcare system with four hospitals and numerous off-site locations throughout Morris and Sussex counties, today agreed to pay over $1 million to settle claims that it overcharged Medicare, U.S. Attorney Christopher J. Christie announced.

A settlement agreement signed today provides that the Saint Clare's Health Services will pay the Government $1,048,260 to settle claims that from 1992 to 1998 it wrongfully submitted claims for inpatient hospital stays for patients who received outpatient services. As a result of Saint Clare's Health Services conduct, it received higher reimbursement than it would have had it billed properly, according to Assistant U.S. Attorney Stuart A. Minkowitz.

In the settlement agreement, Saint Clare's Health Services agreed to continue to follow its corporate compliance program to ensure compliance with Medicare and other federal health care programs. The agreement also provides that Saint Clare's Health Services will submit to the government annual reports regarding its compliance efforts and disclose violations of federal law to the government.

The settlement comes under the federal False Claims Act that permits the government to seek up to triple damages plus penalties for false or fraudulent claims to the government.

While agreeing to the settlement, Saint Clare's Health Services has denied the government's allegations, according to Minkowitz. Saint Clare's cooperated during the government's investigation.

Christie credited Special Agents of the Office of Inspector General, Department of Health and Human Services, under the direction of Inspector General Janet Rehnquist, with developing the case.

The government is represented by Assistant U.S. Attorney Minkowitz, a member of Affirmative Civil Enforcement Unit of the U.S. Attorney's Civil Division in Newark, and Richard Linzer of the Office of Counsel to the Inspector General.

-end-

Defense Attorney:

A. Ross Pearlson, Esq. Newark