Iowa hospital pays $4.5 million to settle fraud case

Posted on Wednesday, August 26th, 2009 at 5:07 am    

The Covenant Medical Center in Waterloo paid $4.5 million to settle a case that alleged it improperly used money from Medicare. The case claimed that the Iowa hospital used the money to bribe five doctors to refer patients to the hospital.

The case was brought by the U.S. Justice Department, which argued that the five doctors, because of their above-market incomes, were disqualified from receiving medicare funds. Although Covenant never admitted to the charges, the payment indicates that the hospital recognized some wrongdoing.

If your company is facing a case from the U.S. Justice Department, contact the Iowa business litigation attorneys of (877) 327-2600.

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