A former employee of Community Health Systems has filed a whistleblower suit alleging that the healthcare company made illegal donations to New Mexico counties that contain three of the chain's hospitals.
According the the whistleblower suit, filed by Robert Baker, Community Health donated to the counties to subsidize the state's Medicaid contributions. The counties allegedly channeled the funds to the state to use as their Medicaid contribution. Since the federal government pays back three times what the state pays for Medicaid, Community Health allegedly received a return on their investment of about three times the amount donated. (Sounds like a sweet deal, if it weren't illegal.)
According to docs filed in the suit, Baker found out about the scheme after taking over as revenue manager for Eastern New Mexico Medical Center in Roswell, NM.
To learn more about this case:
- read this Health Leaders Media piece