Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
TUESDAY, JUNE 18, 2002
WWW.USDOJ.GOV
CIV
(202) 514-2007
TDD (202) 514-1888

139 HOSPITALS OPERATED BY TENET HEALTHCARE TO PAY $17 MILLION
TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS


WASHINGTON, D.C. One hundred thirty-nine hospitals currently or formerly operated by Tenet Healthcare Corporation will pay the United States and 22 states $17 million to settle allegations that the facilities overcharged federal health care programs in connection with laboratory services, the Justice Department announced today. Under the settlement, the United States would receive $16.18 million. The remaining $820,000 of the settlement amount would be put in an escrow account for the benefit of the participating states - Alabama, Arizona, Arkansas, California, Florida, Georgia, Indiana, Iowa, Louisiana, Massachusetts, Mississippi, Missouri, Nebraska, Nevada, North Carolina, Oregon, South Carolina, Tennessee, Texas, Washington, West Virginia and Wyoming.

The settlement with the Santa Barbara, California-based corporation resolves allegations by the United States that the hospitals submitted claims to the government to pay for laboratory tests without regard as to whether the tests were medically necessary, had been properly ordered by physicians, or were otherwise reimbursable under certain federal health care programs. These programs include Medicare, Medicaid, TRICARE - the military's health care program - and the Federal Employees Health Benefits Program.

The case was investigated by the Department of Health and Human Services' Office of the Inspector General (HHS-IG) Santa Ana, California with substantial audit assistance from the HHS-IG's office in San Francisco, California. The case was handled by the Civil Division of the United States Department of Justice.

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