DAVENPORT, Iowa — Genesis Medical Center, an acute care hospital in Davenport, has agreed to pay $1.88 million to the United States to resolve allegations it violated the False Claims Act.
The settlement resolves claims that, from January 1, 2013, to December 31, 2016, Genesis Medical Center violated the False Claims Act by improperly retaining Medicare overpayments for hospital inpatient admission claims when those claims should have been billed at the lower reimbursement rate for either outpatient or observation services.
"Our office will aggressively use the False Claims Act to ensure all health care providers play by the same rules and taxpayers do not pay the bill for unnecessary services," said Marc Krickbaum, United States Attorney for the Southern District of Iowa.
Genesis Medical Center will pay $1.88 million to the United States to resolve the allegations.
The United States Attorney’s Office for the Southern District of Iowa, in conjunction with the United States Attorney’s Office for the Northern District of Iowa, initiated this case. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and share in any recovery.
The settlement is a result of an investigation into Genesis Medical Center’s billing practices, which revealed the hospital improperly retained Medicare overpayments. The investigation found that Genesis Medical Center failed to follow proper procedures for billing patients for inpatient admission claims.
Defendant: Genesis Medical Center
Criminal charges: Violated the False Claims Act
City and state: Davenport, Iowa
Exact date: January 1, 2013, to December 31, 2016
Sentence or outcome: Paid $1.88 million settlement
Dollar amounts: $1.88 million
Key Facts
- State: Iowa
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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