Johnson Memorial Hospital Enters into $191,193 Federal Civil Settlement Agreement

February 22, 2010 - Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that JOHNSON MEMORIAL HOSPITAL, located at 201 Chestnut Hill Road, Stafford Springs, Connecticut, has entered into a civil settlement agreement with the government in which it will pay $191,193 to resolve allegations that it violated the False Claims Act.

U.S. Attorney Dannehy explained that the allegations against JOHNSON MEMORIAL HOSPITAL involved charges to Medicare for infusion therapy, chemotherapy administration, and blood transfusion services between 2000 and 2005. During this time period, Medicare only allowed payment for one unit of infusion therapy and chemotherapy administration per patient visit, and one unit of blood transfusion service per day. However, on many occasions, JOHNSON MEMORIAL HOSPITAL billed Medicare for multiple units of these services. Instead of billing for one unit per visit or one unit per day, JOHNSON MEMORIAL HOSPITAL often billed Medicare for between two and eight units.

To resolve its liability under the False Claims Act, JOHNSON MEMORIAL HOSPITAL will pay $191,193, in order to reimburse the Medicare program.

“Billing for inflated charges relating to chemotherapy, infusion, and blood transfusion services siphons critical resources away from the Medicare program, which relies on hospitals to bill Medicare honestly and accurately,” U.S. Attorney Dannehy stated. “Health care fraud is a national problem that the United States Attorney’s Office is devoted to combating.”

In entering into the civil settlement agreement, JOHNSON MEMORIAL HOSPITAL did not admit liability.

This case was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Richard M. Molot, along with Auditor Kevin A. Saunders.

People who suspect health care fraud are encouraged to report it by calling the Health Care Fraud Task Force at (203) 785-9270 or 1-800-HHS-TIPS.