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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Monday, August 8, 2016

Healthcare Settlement Announced With Easton Hospital

PHILADELPHIA - Northampton Hospital Company, LLC d/b/a Easton Hospital (“Easton Hospital”) has agreed to resolve allegations relating to improper billing for inpatient procedures performed at Easton Hospital.  Easton Hospital provides inpatient and outpatient healthcare services in Easton, Pennsylvania.  The hospital’s services include cardiovascular, orthopedic, oncology, maternal, child health, pediatric, physical therapy rehabilitation, and mental health services.  In addition, it offers surgical care, emergency care, occupational and speech therapy, wound healing management, imaging, radiology, home health, hospice, and laboratory services. 

            According to the United States, from January 1, 2008 through June 27, 2014 Easton Hospital billed inpatient Medicare Part A claims using particular primary diagnosis codes that did not justify admission to an acute care hospital because the codes correspond primarily to long-term, stable conditions.  According to the United States, these primary diagnosis codes were used to justify inpatient admissions for routine procedures that should have instead been performed on an outpatient basis.  Had these procedures been performed on an outpatient basis, the procedures would have been billed at a lower rate.  Easton Hospital has agreed to pay $325,000 to settle the matter. 

The matter was investigated by the Department of Health Office of the Inspector General and Human Services and Healthcare Analyst George Niedzwicki of the U.S. Attorney’s Office.  The matter was handled by Assistant U.S. Attorney Veronica J. Finkelstein.

The settled civil claims are allegations only.  There has been no determination of civil liability, and Easton Hospital denies any such liability.     

 

Updated August 8, 2016