Share this article

print logo

32 hospitals agree to repay fed $28 million for false Medicare claims

Thirty-two hospitals across the country have agreed to pay the federal government $28 million to settle allegations that they submitted false Medicare claims.

The settlement, negotiated by U.S. Attorney William J. Hochul Jr.’s office, means 130 hospitals have now resolved allegations that they mischarged Medicare for kyphoplasty procedures. Kyphoplasty is used to treat certain types of spinal fractures that result from osteoporosis.

None of the hospitals affected by the settlement are in Western New York, but the lawsuit that led to the settlement was filed in Buffalo federal court by two former employees of Kyphon Inc. The employees accused the company of causing the false claims by encouraging hospitals to perform kyphoplasty procedures as inpatient rather than outpatient procedures.