false claims act

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According to the U.S. Justice Department, Children’s National Medical Center has agreed to pay $12.9 million to settle a false claims case.

The department alleges that the medical center inaccurately reported overhead costs on applications and cost reports, which were then used to calculate reimbursement rates to the Department of Health and Human Services. Furthermore, it is believed that the center misreported its available bed count, leading to additional payments from the Virginia and D.C. Medicaid programs, as well as Medicare.

According to reports, all claims resolved in the case remain allegations, as no liability was determined and the center did not admit fault. The Children’s National Medical Center has made it clear that the allegations had no impact on the level of patient care.

The CEO of Children’s National Medical Center added: “Consistent with our commitment to compliance and transparency, and with the full support of our board, we actively cooperated with the government to bring the matter to a prompt and responsible resolution.”

The settlement also brings an end to a whistleblower lawsuit from a former worker. He will receive approximately $2 million in recovered funds for his part in the case.