Dignity Health to pay $37 million to settle false claim allegations

The hospital system Dignity Health recently agreed to pay the government $37 million to settle allegations it overbilled Medicare from 2006 to 2010 for inpatient care at a dozen of its hospitals that should have been billed as outpatient procedures.

 

According to a statement released by Dignity Health officials, the settlement is not an admission of wrongdoing. Rather, it shows the system’s desire to “resolve the investigation and avoid the expense of continued litigation.”

 

The payment settles a whistleblower lawsuit filed by a former employee, who will receive $6.25 million of the settlement.