NJ hospitals face false-claims charges

The U.S. Department of Justice has decided to investigate False Claims Act allegations against three New Jersey Hospitals. Whistleblowers have accused the hospitals of scheming to increase their Medicare outlier payments by inflating charges. Hospitals targeted by the DOJ action include Robert Wood John University Hospital of Hamilton, Barnert Hospital in Patterson and Bayonne Hospital. (The latter two have already filed for Chapter 11 bankruptcies.) This investigation is being spurred by the same whistleblowers who filed suits against Tenet Healthcare Corp. and West Orange, N.J.-based St. Barnabas Health Care System, both of which resulted in large settlements related to alleged outlier fraud.

To learn more about the investigation:
- read this DOJ press release

Related Articles:
Tenet settles SEC suit for $10 million. Report
Tenet wins $1B federal lawsuit, but pays $788 million DOJ settlement. Report
St. Barnabas to pay $265 million for Medicare fraud. Report

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