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Medicare and Medicaid

Minnesota Hospitals Pay $2.28 Million to Settle Medicare Fraud Charges Involving Kyphoplasty

Published in Surgery Litigation and Law Weekly, June 5th, 2009

Three HealthEast hospitals in the St. Paul, Minnesota, area have agreed to pay the federal government a total of $2.28 million to settle a whistleblower ("qui tam") lawsuit alleging Medicare fraud involving a certain type of spinal surgery known as kyphoplasty.

The Minnesota hospitals are the first hospitals to settle charges stemming from a government investigation into Medicare fraud involving billing for kyphoplasty.

The whistleblower lawsuit, which the federal government joined, says the HealthEast hospitals overcharged Medicare from 2002 to 2007 by thousands of dollars each time they performed kyphoplasty, a procedure used to treat certain...

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