In December 14, 2000, HCA Inc., the largest for-profit hospital chain in the US, reached a settlement with the Justice Department over allegations of having defrauded the government. As part of the agreement, the company pleaded guilty to 14 criminal counts and agreed to pay more than $840 million in criminal fines, civil penalties, and damages. The Justice Department’s investigation found that the company had employed a variety of schemes to falsely charge or overcharge for services provided to patients covered by federal health plans. HCA billed Medicare, Medicaid, and other federal health care programs for lab tests that were not medically necessary or ordered by physicians. It billed the government for non-reimbursable expenses by disguising them as reimbursable “community education” expenses or as “management fees.” Other violations included using incorrect diagnostic codes when billing the government in order to increase its revenue, billing for services rendered to patients who did not qualify to receive them, and billing for services that were never performed. Of the total amount settled upon, $95 million is for violations committed by two HCA subsidiaries, Columbia Homecare Group Inc. and Columbia Management Companies Inc. The two companies had engaged in cost report fraud, fraudulent billing, paying kickbacks to doctors for referrals, and paying kickbacks in connection with the purchase and sale of home health agencies.
So here we are, painfully close to reforming Health Care in this country, and the public – and even some Dem reps – are defending the doctors and healthcare companies who have been scamming us for decades. The health insurance companies themselves are being ripped off by fraudulent and inflated healthcare costs, but they don’t care, because ultimately they can pass the expense on to companies and the insured.
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