Monday, December 23, 2024

Florida Hospital System Settles Improper Discount Liability by Paying Fine

Baptist Health System Agrees to Pay $1.5 Million to Resolve False Claims Act Allegations

Baptist Health System in Florida Agrees to Pay $1.5 Million to Settle False Claims Act Allegations

Baptist Health System, a prominent healthcare provider in Florida, has reached a settlement agreement to pay $1.5 million to resolve allegations of violating the False Claims Act. The allegations stemmed from accusations that Baptist Health subsidiaries offered discounts to patients in order to induce them to purchase or refer Baptist Health services reimbursed by federal healthcare programs.

The settlement comes after an investigation by the United States, which found that Baptist Health subsidiaries provided discounts of up to 50% or more on patient cost-sharing obligations for certain categories of Medicare beneficiaries. These discounts were allegedly given without any financial need consideration and were intended to incentivize beneficiaries to purchase or refer services from Baptist Health subsidiaries.

In a positive turn, Baptist Health voluntarily self-disclosed this conduct to the United States and cooperated fully with the government’s investigation. The healthcare provider also took remedial measures, including discontinuing its discount policy, conducting an internal compliance review, and providing detailed disclosure statements to assist in the investigation.

Principal Deputy Assistant Attorney General Brian Boynton emphasized the importance of using the False Claims Act to address prohibited remuneration in federal healthcare business. U.S. Attorney Roger Handberg for the Middle District of Florida echoed this sentiment, highlighting the benefits of self-disclosures in protecting taxpayer-funded healthcare programs.

The resolution of this matter was a collaborative effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, U.S. Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services’ Office of Inspector General. The investigation and settlement underscore the government’s commitment to combating healthcare fraud and abuse.

It is important to note that the claims resolved by the settlement are allegations only, and there has been no determination of liability. Individuals with information about potential healthcare fraud, waste, or abuse are encouraged to report it to the Department of Health and Human Services.

Overall, the settlement serves as a reminder of the government’s vigilance in safeguarding federal healthcare programs and holding providers accountable for improper conduct.

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