KANSAS CITY, KAN. – A Kansas hospital has agreed to pay $250,000 to settle claims that it violated the False Claims Act, according to a press release from U.S. Attorney Stephen McAllister.
Coffey Health System, a twenty-five bed critical access hospital located in Burlington, Kan., allegedly falsely attested that it conducted and/or reviewed security risk analyses in accordance with requirements under a federal incentive program for the reporting periods of 2012 and 2013.
The U.S. government alleged that the hospital submitted false claims to the Medicare and Medicaid Programs pursuant to the Electronic Health Records (EHR) Incentive Program. The American Recovery and Reinvestment Act of 2009 established the program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology.
“Medicare and Medicaid beneficiaries expect that providers ensure the accuracy and security of their electronic health records,” said United States Attorney Stephen McAllister. “This office remains committed to protecting the federal health programs and to hold accountable those whose conduct results in improper payments.”
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Providers who fail to properly ensure the security of electronic health records must be held accountable.”
The settlement announced today resolves allegations in a lawsuit filed by Bashar Awad and Cynthia McKerrigan, in the United States District Court for the District of Kansas. The lawsuit was filed 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; Awad and McKerrigan will receive approximately $50,000.
The case is captioned United States ex rel. Awad et al. v. Coffey Health System, 2:16-CV-03034 (D. Kan.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The defendant in this case is Coffey Health System, a twenty-five bed critical access hospital located in Burlington, Kan. The exact criminal charges are False Claims Act violations. The city and state are Kansas City, Kan. The exact date of the settlement is not mentioned in the press release. The sentence or outcome is a payment of $250,000. The dollar amounts where applicable are $250,000.
Key Facts
- State: Kansas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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