Norwalk Hospital to Pay Feds for False Claim Allegation

Norwalk Hospital is among 31 other hospitals that have agreed to pay the United States more than $28 million to settle allegations that they submitted false claims to Medicare for minimally-invasive kyphoplasty procedures.

The Justice Department has reached settlements with more than 130 hospitals.

Noralk Hospital has agreed to pay $920,000.

Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis. In many cases, the procedure can be performed safely and effectively as an outpatient procedure without any need for a more costly inpatient hospital admission.

The settlements resolve allegations that the 32 settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.

“Charging the government for higher cost inpatient services that patients do not need wastes the country’s vital health care dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire to maximize hospital profits.”