California hospital network to pay $37 million penalty for unnecessary procedures and overcharging patients

‘Another plaintiff has successfully taken advantage of the Federal False Claims Act (FFCA), recovering $6.25 million for herself and more than $30 million for the federal government after a large, Northern California-based hospital network agreed to settle a lawsuit alleging misconduct and fraud against the Medicare system.

San Francisco-based Dignity Health has agreed to pay out $37 million to settle a 2009 whistleblower lawsuit filed by former worker Kathleen Hawkins, who says Dignity submitted many false and inflated Medicare claims between 2006 and 2010. According to the suit, 13 hospitals in the Dignity network routinely admitted patients for procedures they didn’t need, and over-billed Medicare for their procedures.’

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