Baptist Health System to Pay $1.5 Million Settlement for Medicare Discounts Violation
Baptist Health System Inc. to Pay $1.5 Million to Settle Allegations of Medicare Kickbacks
Jacksonville’s Baptist Health System Inc. has agreed to pay the federal government $1.5 million after self-reporting that its subsidiaries offered Medicare patients discounts that violated laws against kickbacks, the U.S. Justice Department reported on Monday.
The health system, known for operating hospitals and emergency centers across Northeast Florida, took proactive steps to cooperate with the government’s investigation, earning credit for their efforts, according to the agency.
A Baptist spokeswoman stated that the hospital chain voluntarily disclosed outdated courtesy discount practices, which led to the settlement with the Justice Department.
The allegations against Baptist Health involved violations of the False Claims Act, a law that prohibits kickbacks by parties participating in federal programs. The health system provided deep discounts on patient bills to some Medicare beneficiaries, without considering financial need, in an effort to induce them to purchase or refer Baptist Health services reimbursed by federal health care programs.
The discounts, which could be as high as 50 percent or more, were offered between 2016 and August 2022, potentially inflating Medicare expenses. The Justice Department did not specify which services or groups of Medicare beneficiaries were affected by the discounts, but a settlement appendix listed 13 Baptist units covered by the agreement.
As part of the settlement, Baptist Health agreed to pay $1.5 million, provide a breakdown of previously submitted unallowable costs to Medicare, and allow the government to recoup any overpayments plus applicable interest and penalties. The health system also discontinued its discount policy, conducted an internal compliance review, and provided detailed financial disclosures to aid in resolving the federal investigation.
In a statement, Baptist Health emphasized its commitment to transparency and compliance with federal laws, stating that the settlement reaffirms their dedication to delivering high-quality care in a compliant manner.
This settlement serves as a reminder of the importance of adhering to regulations and maintaining ethical practices in the healthcare industry.