Rex settles Medicare claim allegations

April 4, 2011 9:08:49 AM PDT
The Department of Justice announced Monday that Rex Healthcare has agreed to pay $1.9 million to settle allegations it submitted false Medicare claims.

DOJ lawyers allege the Raleigh hospital "submitted claims to Medicare for a variety of minimally-invasive procedures during the period 2004 through 2007, which the hospital classified as inpatient admissions in order to increase its reimbursement from Medicare."

A news release issued Monday said the settlement comes after two whistleblowers filed suit.

"We pursue cases like this because when hospitals submit false claims in order to increase their Medicare reimbursement, as we allege here, it artificially drives up the cost of health care, leaving taxpayers to foot the inflated bill," said Tony West, Assistant Attorney General for the Justice Department's Civil Division.

ABC11 is reaching out to Rex for a comment on the settlement.

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