A Missouri-based health system has agreed to pay $60 million to settle a federal investigation into alleged Medicare fraud and other violations of federal law. Under the terms of the settlement, Springfield, MO-based CoxHealth would pay $35 million when the settlement is finalized, then $5 million per year for five years at an interest rate of 4.5 percent.
About three years ago, the HHS began investigating the health system, which includes three hospitals. The agency alleged that there were problems with the way Cox paid physicians (including payments to physicians providing no services at all), the way Cox billed for renal dialysis and the way it reported Medicare costs. Along the way, two former CoxHealth employees filed suit, asserting that they were fired after talking to federal investigators about possible criminal Medicare fraud involving dialysis services.
To learn more about the investigation:
- read this Kansas City Star piece
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