Have You Been Injured? We're Ready to Fight for You.

Hospital Chain Allegedly Inflating Bills

Published on Feb 14, 2014 at 8:52 am in Business Litigation.

Kentucky Business Litigation Health Management Associates, a for-profit chain of hospitals headquartered in Florida, is under fire for allegedly using elaborate schemes to overbill Medicare and Medicaid clients. The U.S. Justice Department recently joined eight lawsuits filed by company whistleblowers in six states.

The whistleblowers have described a strategy to admit more patients into the hospitals, regardless of the patients’ actual condition. Emergency room doctors were given targets to admit at least half of all patients over 65 years old that came into the emergency room. These goals were buffeted with scorecards posted on the wall. Doctors who made the target were colored green, those near were yellow, and doctors not even close were assigned the color red.

Even children were targeted, with tales of doctors admitting babies to the hospital because they had a fever, even though their temperatures were within normal range.

The whistleblowers report that the CEO himself was allegedly driving the high admission strategy, which also utilized financial rewards and threats. The company designed its own software to track admission numbers – this was the program that provided daily updates of each doctor’s admission rates,

One hospital executive reported that he approached the CEO with complaints from doctors that the requirements were not clinically appropriate, and that they would result in tests and admissions that weren’t necessary.

Many of the whistleblowers were doctors, hospital administrators, and compliance officers. Several of them were fired for complaining or not complying. One whistleblower is an administrator from a physicians group who refused to fire doctors who didn’t meet their admission quotes, and she in turn was fired.

Federal regulators are currently investigating billing procedures at several hospital chains, including Health Management Associates. Experts say these developments are the result of a shift in medicine from a field where decisions are made by a patient’s personal doctor to one where corporate owners make decisions.

These large hospital chains earn billions of dollars in revenue and, somewhat like banks, are proving difficult for the federal government to regulate. In fact, The New York Times reports that analysts have shrugged off these lawsuits. Even since the U.S. Justice Department has joined in the lawsuits, the company’s stock has not seen a real impact.

Part of the reason is that many settlements in these kinds of cases are only for tens of millions of dollars and are written off as a cost of doing business. One analyst said a penalty would have to be in the range of $500 million to seriously have any effect.

Meet Your Team

Tad Thomas - Trial Lawyer

Tad Thomas

Managing Partner

Tad Thomas has dedicated his practice to representing plaintiffs in various types of civil litigation, including personal injury, business litigation, class actions, and multi-district litigation.

After graduating with his law degree in 2000 from Salmon P. Chase College of Law at Northern Kentucky University, Mr. Thomas immediately opened his own private practice and began representing injury victims.

In 2011, Thomas Law Offices was established in Louisville, Kentucky. Over the past decade, Mr. Thomas has expanded his firm and now has offices in three additional locations: Cincinnati, Ohio, Columbia, Missouri, and Chicago, Illinois. He is also a frequent lecturer on topics like trial skills and ethics and technology.

Free Case Evaluation

At Thomas Law Offices, our personal injury attorneys recognize that our potential clients are likely going through some of the most difficult times of their lives. We don't want you to have to worry about paying out-of-pocket for legal advice when you're just starting to learn your legal rights and options. That's why we provide free case evaluations. We'll offer our expert advice about your potential case and walk you through how we can help you.

Call us or fill out the form below to tell us about your potential case and a personal injury lawyer will get back to you as quickly as possible.

Legal & Firm News

When to See a Neurologist After a Car Accident

Doctors who specialize in disorders and injuries affecting the brain, spinal cord, and surrounding muscles and nerves are referred to as neurologists. For those involved in a car accident, visiting a neurologist may not be something that is initially considered. But too many people ignore the signs that their accident caused nerve damage, a spinal […]

Read More

How Climate Change May Affect Our Roads, Highways, and the Frequency of Car Accidents

On October 7, 2021, the White House announced the release of Climate Adaptation and Resilience Plans from more than 20 federal agencies, including the U.S. Departments of Education, Labor, Commerce, Homeland Security, and Transportation. These Climate Adaptation Plans detailed the methods that each agency’s facilities and operations would adopt in order to become increasingly resilient […]

Read More

Examining the Rise of Active Duty Military Suicides

For the past two decades, the question has been asked more and more frequently by researchers and the general public alike. Why is the suicide rate so high in the military? The Department of Defense Annual Suicide Report released in September 2021 showed an increase of 41.4% in active duty service member deaths by suicide […]

Read More