Coffey Health System denies any wrongdoing, but said it settled to avoid additional legal fees and 'the risk of an unfavorable outcome.'
A rural hospital in Kansas will pay $250,000 to settle whistleblower allegations that it falsified the status of its meaningful use program, the Department of Justice announced.
Coffey Health System, a 25-bed critical access hospital in Burlington, Kansas, allegedly submitted false claims to Medicare and Medicaid under the Electronic Health Records Incentive Program for some of the $2.2 million it collected in 2012 and 2013.
Specifically, DOJ said, Coffey Health falsely claimed that it had met program reporting requirements for ensuring EHR security.
The settlement resolves allegations in a 2016 whistleblower lawsuit filed by two former hospital employees, who will receive $50,000.
Coffey Health issued a statement denying any wrongdoing and maintains that it "properly implemented its electronic health record system, and correctly documented it."
"Nevertheless, the hospital decided to settle the lawsuit rather than continue the litigation with the government because of the additional attorney’s fees and the risk of an unfavorable outcome, which is always possible in litigation," the statement read. "Also, the hospital was concerned that the litigation with the government would distract its staff from their primary mission, which is outstanding patient care."
“The hospital has denied any wrongdoing, and has maintained that it properly implemented its electronic health record system, and correctly documented it.”
Coffey Health System, Burlington Kansas
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Coffey Health System, a 25-bed critical access hospital in Burlington, Kansas, allegedly submitted false claims to Medicare and Medicaid under the meaningful use initiative.
Specifically, DOJ said, Coffey Health falsely claimed that it had met program reporting requirements for ensuring EHR security.
The settlement resolves allegations in a 2016 whistleblower lawsuit filed by two former hospital employees.