NJ Hospital and Investors Settle Alleged False Claims Case, Agrees to Pay $30.6 Million to the United States

HI INDIA NEWS DESK
NEWARK, NJ- Columbus LTACH, operating as Silver Lake Hospital in Newark, New Jersey, has agreed to pay over $18.6 million, plus interest, to settle False Claims Act violations.

The hospital was accused of claiming excessive cost outlier payments from Medicare by distorting the payment system. Additionally, certain Silver Lake investors, including Dr. Richard Lipsky, will pay $12 million, plus interest, to resolve Federal Debt Collection Procedures Act violations for fraudulent money transfers from the hospital. The payments will be made over five years, considering Silver Lake’s financial constraints. The allegations include artificially inflating charges beyond the hospital’s ability to repay after Medicare reconciliation.

The settlement emphasizes that Medicare payments are not meant for hospital enrichment. The FBI and HHS-OIG collaborated in the investigation, highlighting the government’s commitment to combat healthcare fraud. The settlement is based on allegations, and no liability determination has been made.