Comprehensive Cancer Centers, Inc. (CCC) will pay the federal government $900,000 to settle allegations that it defrauded the Medicare program by using an “upcoding” scheme.
The suit, which originated as a whistleblower action under the qui tam provisions of the False Claims Act, alleged that CCC, which manages the outpatient cancer center at Desert Regional Medical Center, knowingly caused Desert Regional to overcharge Medicare by improperly using certain diagnostic codes that resulted in higher reimbursement payments than the cancer center deserved.
The $900,000 settlement also resolves allegations that CCC caused Desert Regional to submit Medicare cost reports that sought reimbursement for unreasonable management fees paid to CCC.
The press release from the Office of the U.S. Attorney for the Central District of California was issued on November 7, 2006.