FOR IMMEDIATE RELEASE CIV THURSDAY, AUGUST 1, 1996 (202) 514-2008 TDD (202) 514-1888 JUSTICE DEPARTMENT ALLEGES FRAUD BY A FLORIDA MENTAL HOSPITAL DEMENTED ELDERLY PATIENTS IMPROPERLY ADMITTED; GOVERNMENT BILLED WASHINGTON, D.C. -- The Justice Department today filed an amended complaint against a Florida psychiatric hospital, alleging that it improperly admitted several hundred elderly patients with brain disorders like Alzheimer disease and passed the costs on the taxpayers by charging federal insurance programs for unnecessary care. The complaint alleges, in general, that Charter Hospital, of Kissimmee, defrauded the federal government by submitting bills for the treatment of elderly demented patients who either should not have been admitted to the hospital or who were kept at the hospital far too long. Assistant Attorney General Frank Hunger of the Civil Division said the Department filed on August 1 an amended complaint against Charter Hospital of St. Louis, Inc., a Missouri corporation doing business as Charter Hospital Orlando south ("Charter Hospital"). More specifically, the complaint alleges as follows: (1) Charter Hospital has admitted hundred of elderly demented patients, primarily from nursing homes and assisted living facilities, despite knowing that these patients did not need acute, in-patient psychiatric treatment; (2) To the extent any of these patients may have needed acute-inpatient psychiatric care, Charter Hospital knowingly hospitalized these patients longer than necessary; (3) Charter Hospital allowed a large number of these elderly demented patients to admit themselves voluntarily to the hospital, often after they had been transported against their will from nursing homes and assisted living facilities, despite knowing that these patients were incapable of making knowing and willful decisions concerning their admissions. In fact, the complaint alleges that Charter Hospital sometimes used deceit to secure patients' signatures on voluntary admission forms; and (4) Charter Hospital falsified certain medical records to reflect, contrary to fact, that these elderly demented patients were improving during their stays at the hospital and that therapy sessions were conducted and attended by these patients. This action was initially filed under seal on or about May 1994 by two former employees of Charter Hospital pursuant to the whistle-blower provisions of the False Claims Act. The United States took over the case in September 1995. The Court subsequently unsealed the complaint. The case is being handled by the Civil Division of the Department of Justice in Washington, D.C., and investigated by the Orlando, Florida offices of the Defense Criminal Investigative Service and the Federal Bureau of Investigation. ###### 96-366