Community Health Systems Inc. (CHS) has agreed to pay $89.15 million to settle allegations that its hospitals unnecessarily admitted patients in order to take advantage of more generous inpatient billing rates. The settlement resolves allegations brought in seven separate False Claims Act lawsuits which were initiated by several whistleblowers, including a former Director of Health Information Systems, an EMS coordinator, and multiple nurses and emergency room physicians. The whistelblowers, who worked together to aid the government’s investigation, will receive a portion of the government’s recovery.

CHS has also agreed to pay $9 million to resolve allegations related to Laredo Medical Center, one of its affilated hospitals. In addition to allegedly engaging in unnecessary outpatient admissions, LMC is also alleged to have violated the Stark law in connection with a physician who was offered a medical directorship position at the hospital.

Read the DOJ press release, “Community Health Systems Inc. to Pay $98.15 Million to Resolve False Claims Act Allegations”
Read the Corporate Crime Reporter article, “Community Health Systems Inc. to Pay $97 Million to Settle False Claims Act Charge”