Columbus LTACH, operating as Silver Lake Hospital, a long-term care hospital in Newark, New Jersey, along with certain investors, have agreed to a $30.6 million settlement to resolve accusations of healthcare fraud.
U.S. Attorney Philip R. Sellinger announced the settlement, which addresses alleged violations of both the False Claims Act and the Federal Debt Collection Procedures Act (FDCPA).
Silver Lake Hospital has agreed to pay over $18.6 million, plus interest, for allegedly claiming excessive cost outlier payments from the Medicare program.
This practice is said to have led to the hospital receiving millions in unjustified payments. Additionally, certain investors of Silver Lake have agreed to pay $12 million, plus interest, to settle claims of fraudulent money transfers from the hospital to its investors.
These payments will be made over a five-year period, with the terms considering Silver Lake’s limited capacity to pay the full amount immediately.
U.S. Attorney Sellinger emphasized that Medicare is intended to ensure necessary patient care, not to provide unwarranted financial gains to hospitals and their investors.
Source: Newark Hospital and Investors Settle for $30.6 Million in Healthcare Fraud Case / RLS Media