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Nine More Hospitals Settle Kyphoplasty Fraud Allegations, Pay $9.4 Million

May 18, 2010

According to the Department of Justice, nine hospitals in seven states have agreed to pay $9.4 million, collectively, to settle claims that the hospitals falsely billed the United States for kyphoplasty, a minimally-invasive procedure used to treat spinal fractures related to osteoperosis. The Government contends that the hospitals admitted patients for in-patient procedures when the procedures could have been more safely, effectively, and economically performed on an out-patient basis. These agreements follow the May, 2008 settlement between the U.S. and Medtronic Spine, LLC, successor in interest to Kyphon, Inc. and the September, 2009 settlements of nine other hospitals. Whistleblowers Craig Patrick and Charles Bates, who instituted an action against the hospitals in 2008 under the qui tam provisions of the False Claims Act, will receive $1.5 million from the most recent settlement.

To report Medicare billing fraud, contact Frohsin & Barger.

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