- Associated Press - Thursday, May 7, 2015

LITTLE ROCK, Ark. (AP) - The U.S. Department of Justice says 16 hospitals in seven states and their corporate parents have agreed to pay nearly $15.7 million to settle allegations they violated the False Claims Act by receiving Medicare reimbursements for psychiatric services that were not “medically reasonable or necessary.”

Health Management Associates Inc. and 14 of its hospitals in Arkansas, Oklahoma, Mississippi, Texas, North Carolina, Georgia and Florida will pay a total of $15 million. Community Health Systems and its subsidiary Wesley Medical Center in Mississippi will pay $210,000; and North Texas Medical Center in Texas will pay $480,000.

The settlements resolve allegations that Intensive Outpatient Psychotherapy services were billed to Medicare for patient services that were not reasonable or necessary.

The claims are allegations only, and there has been no determination of liability.


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