Beth Israel Deaconess Medical Center has agreed to pay $5.3 million to the federal government to resolve allegations that it violated the False Claims Act by billing Medicare for inpatient stays that should have been treated as outpatient or observation cases. But Beth Israel says that what the U.S. Attorney's office calls fraud, the hospital calls quality care. A statement from Beth Israel reads in part, "Indeed, during the inquiry, BIDMC vigorously defended claims for an inpatient level of service delivered to patients whom physicians had concluded should be admitted to the hospital because of their condition Under the settlement, BIDMC admits no liability whatsoever."
