Carondelet to pay $35 million to settle false claim allegations

Arizona-based Carondelet Health Network has agreed to pay $35 million to resolve allegations that two of its hospitals submitted false claims for inpatient rehabilitation services to Medicare and other federal programs from 2004 to 2011.

Carondelet previously repaid $24 million to the government in 2012 after an internal review determined that some cases were inappropriately billed. The Justice Department continued to investigate due to a whistle-blower lawsuit filed under a provision of the False Claims Act.