09-21-05 -- Solaris Health System, Inc. -- Settlement -- News Release

Solaris Health System Agrees to Pay $230,000 to Settle Medicare Over Billing Accusations

NEWARK - Solaris Health System, Inc., of Edison, which operates JFK Medical Center and Muhlenberg Regional Medical Center, today agreed to pay $230,000 to settle claims that it overcharged Medicare, U.S. Attorney Christopher J. Christie announced.

A settlement agreement signed yesterday provides that Solaris will pay the government $230,000 to settle claims that from 1992 through 1998 JFK and Muhlenberg wrongfully submitted claims for inpatient hospital stays for patients who received outpatient services. As a result of the hospitals' conduct, the hospitals received higher reimbursement than they would have had it billed properly, according to Assistant U.S. Attorney Daniel J. Gibbons.

In the settlement agreement, Solaris agreed to continue to follow its corporate compliance program to ensure proper billing procedures with Medicare and other federal health care programs. The agreement also provides that Solaris will submit to the government annual reports regarding its compliance efforts and disclose violations of federal law to the government.

The settlement comes under the federal False Claims Act that permits the government to seek up to triple damages plus penalties for false or fraudulent claims to the government. While agreeing to the settlement, Solaris has denied the government's allegations, according to Gibbons. Solaris cooperated during the government's investigation.

Christie credited Special Agents of the Office of Inspector General, Department of Health and Human Services, with developing the case.

The government is represented by Assistant U.S. Attorney Daniel J. Gibbons, Deputy Chief of the U.S. Attorney's Civil Division in Newark, and Richard Linzer of the Office of Counsel to the Inspector General, Department of Health and Human Services.

-end-

Defense Counsel: Sean P. Murphy, Senior Vice President/Corporate Compliance Officer, Solaris Health System, Inc.