/Grenada County to pay $11 million to settle fraud charge

Grenada County to pay $11 million to settle fraud charge

The settlement was announced last week. It resolves claims that the former county-owned hospital and Allegiance Health Management Company submitted claims for treatments that were neither medically necessary nor reasonable. These therapies included watching TV and playing video games. These false claims were made between 2005 and 2013. This was before the Grenada Lakes Medical Center, which was then called the University of Mississippi Medical Center, partnered with them in 2014. The hospital is now known as UMMC Grenada. While Allegiance was technically responsible to providing the disputed treatments, Grenada County, who had previously owned the hospital, as well as all other hospitals that have settled with the Department of Justice, are responsible for paying restitution since they submitted claims for Medicare reimbursement. Chad A. Readler is the acting assistant attorney general for Civil Division. He stated that hospitals that are part of the Medicare program have to ensure that services provided at their facilities or on behalf of patients reflect the medical needs and not the desire for profit. “The Department of Justice continues to hold those who misspend taxpayer money by providing medically inept services accountable,” said Chad A. Readler, acting assistant attorney general for the Civil Division. This whistleblower provision of False Claims Act allows private parties to sue the United States to make false claims and receive a portion of the government’s recovery. Ryan Ladner was the whistleblower in this matter. He had previously worked as a Program Manager at Inspirations Outpatient Counseling Center, Hattiesburg. As part of the Grenada settlement, Mr. Ladner will be awarded $195,000