Feds reach $75M settlement in Medicaid false claims case - WRCBtv.com | Chattanooga News, Weather & Sports

Feds reach $75M settlement in Medicaid false claims case

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ALBUQUERQUE, N.M. (AP) - The U.S. Justice Department has reached a $75 million settlement with a Tennessee-based company and three New Mexico hospitals in a Medicaid false claims case that stemmed from a whistleblower's complaints.

Federal prosecutors announced the settlement Monday.

The case involved allegations that Community Health Systems Professional Services Corp. made illegal donations to county governments. Those donations were then used by the counties and subsequently the state to obtain federal matching payments for hospitals in New Mexico.

Prosecutors say the provider knowingly caused the state to present false claims for payments made under a now-discontinued program that supplemented Medicaid funds to hospitals in rural areas.

Community Health Systems officials did not immediate return a message seeking comment about the settlement.

The company manages more than 200 affiliated hospitals in 29 states, with SkyRidge Medical Center in Cleveland among the hospitals.

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