Seven hospitals from Florida to Texas will pay more than $6.3 million to settle allegations that they performed simple spine procedures – which are normally done as outpatient cases – in inpatient settings, thereby increasing their billings.

Whistleblowers Craig Patrick and Charles Bates, both formerly employed by device-maker Kyphon, detailed how Kyphon employees coached hospitals how to schedule and bill kyphoplasty as an inpatient procedure, when generally it is done as day surgery. Medtronic Spine Purchased Kyphon in 2007 and settled with the federal government for $75 million in 2008. Patrick and Bates will receive about $1.1 million for their role in the current settlement.

The seven hospitals that settled are: Lakeland Regional Medical Center, Lakeland, FL ($1,660,134); Seton Medical Center, Austin, Texas ($1,232,955); Greenville Memorial Hospital, Greenville, SC ($1,026,764); Eliza Coffee Memorial Hospital, Florence, AL ($676,038); Presbyterian Orthopaedic Hospital, Charlotte, NC ($637,872); St. Dominic-Jackson Memorial Hospital, Jackson, MS ($555,949); and Decatur General Hospital, Decatur, AL ($537,892)