Feds dock NY's Beth Israel $13M for 'turbocharging' Medicare

Beth Israel Hospital will pay the federal government $13 million for fraudulently inflating bills to Medicare, in a settlement that provides a rare glimpse into financial decision-making among hospital executives. Federal prosecutors alleged that Beth Israel abused a system of "outlier payments." The complaint characterized billing at Beth Israel as "turbocharging," with the hospital dramatically increasing the price tag for various services, when costs were increasing only modestly. Between 1996 and 2003, inpatient costs for treating Medicare patients grew by 10 percent, while charges to Medicare soared by 200 percent.