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VOL. 124 | NO. 156 | Tuesday, August 11, 2009

Lawsuit Alleges Medicaid Fraud by Tenn.-based Hospital Corp.

The Associated Press

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ALBUQUERQUE, N.M. (AP) - A federal whistleblower lawsuit alleges a Tennessee-based hospital corporation made more than $90 million off the Medicaid program at three New Mexico hospitals over eight years.

The lawsuit claims the hospitals run by Community Health Systems Inc. made donations to the counties where the hospitals are located. In turn, the counties turned the money over to the state to cover its match for federal Medicaid money.

Federal rules allow health care companies to make such donations only under very limited circumstances.

A spokeswoman for Community Health Systems declined to comment on the pending litigation.

The lawsuit seeks damages and penalties from the company in an amount to be decided by U.S. District Judge William Johnson. No trial date has been set.

___

Information from: Albuquerque Journal, http://www.abqjournal.com

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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