March 12, 2009
Victory Memorial Hospital has agreed to pay at least $2.3 million to resolve allegations brought in a whistleblower suit that it defrauded the Medicare program. The U.S. Attorney’s Office for the Eastern District of New York announced the settlement under the False Claims Act.
The hospital, which operated as a not-for-profit in Brooklyn until May 2008, allegedly understated revenues from patients in its cost reports. This resulted in higher reimbursements from Medicare.