Catholic Healthcare West (CHW), which owns or controls some 41 hospitals in California, Arizona, and Nevada, has agreed to pay the federal government $9.1 million to settle allegations that seven of its hospitals submitted false claims to Medicare in the 1990s. Three of the hospitals – O’Connor Hospital in San Jose, Seton Medial Center in Daly City, and St. Joseph’s Hospital and Medical Center in Phoenix – allegedly were overpaid due to processing errors but did not refund the extra payments.

All seven hospitals established accounting reserves that they can use to repay Medicare if auditors detect similar issues in the future.

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