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Press Release

Millcreek Community Hospital Will Pay $2,451,000 to Settle Claims for Medically Unnecessary Inpatient Rehabilitation Services

For Immediate Release
U.S. Attorney's Office, Western District of Pennsylvania

PITTSBURGH – Millcreek Community Hospital, located in Erie, Pennsylvania, has agreed to pay $2,451,000 to resolve claims that the hospital violated the False Claims Act by billing Medicare and Medicaid for medically unnecessary inpatient rehabilitation services, Scott W. Brady announced today.

Millcreek Community Hospital (Millcreek) has an inpatient rehabilitation unit located within its hospital. An inpatient rehabilitation unit is intended to provide services to patients needing rehabilitative services that require hospital-level care. The United States contends that between July 1, 2013 and December 31, 2017, Millcreek admitted patients to its inpatient rehabilitation unit who did not qualify for such services, and failed to adequately document in the patients’ medical records that the inpatient rehabilitation services were medically necessary and reasonable.

As part of the settlement, Millcreek also agreed to enter into a Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of Counsel to the Inspector General, which will require, among other things, regular monitoring of the hospital’s billings for a period of five years.

"Health care fraud threatens the safety and integrity of our entire health care system," said U.S. Attorney Brady. "When doctors and medical professionals order unnecessary testing or services, they in effect steal from the most vulnerable members of our community by raising the cost of care for everyone."

This matter was investigated by the Office of Inspector General of the United States Department of Health and Human Services. Assistant United States Attorney Rachael L. Mamula handled the investigation that led to this settlement on behalf of the United States.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

Updated July 15, 2019

False Claims Act