NEW YORK (Legal Newsline) — Three hospitals in the Mount
Sinai Health System will pay a total of $2.95 million after allegations of
violating the federal and New York False Claims Acts, New York Attorney General
Eric T. Schneiderman has announced.
The entities involved are Mount Sinai Beth Israel (formerly
Beth Israel Medical Center), Mount Sinai St. Luke’s (formerly St. Luke’s
Hospital) and Mount Sinai Roosevelt (formerly Roosevelt Hospital) (together,
the “Hospitals”) – and the Hospitals’ former partnership group, Continuum
Health Partners Inc. (“Continuum,” and together with the Hospitals,
According to allegations, the hospitals knowingly kept more
than $844,000 in Medicaid overpayments that should have gone back to the
“Repaying Medicaid for false claims is not only vital to the
integrity of the program, but it is also the law,” Schneiderman said. “We will
not allow hospitals to drain important resources from the system, and will
continue to ensure that the program is properly reimbursed for the funds that
it is owed.”
The case occurred due to a whistleblower lawsuit. The
whistleblower will receive $354,000 from the state as a reward.
“Taxpayers should not have to foot the bill for waste, fraud
and abuse of Medicaid. We will continue to partner with Attorney General
Schneiderman in rooting out corruption in the Medicaid system,” State
Comptroller Thomas P. DiNapoli said.