JACKSON — Seven more hospitals, including one in Mississippi, have agreed to pay the government a total of $6.3 million to settle a whistleblower lawsuit involving the overcharge of Medicare for a type of back surgery known as “kyphoplasty,” according to the law firm of Phillips & Cohen, LLP, which cited a Department of Justice announcement made Jan. 4.
The hospitals are located in Alabama, Florida, Mississippi, North Carolina, South Carolina and Texas.
According to the firm, St. Dominic-Jackson Memorial Hospital in Jackson agreed to pay $555,949.
The settlements bring the government’s total recoveries from the lawsuit to $101 million, collected from 25 hospitals and Medtronic Spine, LLC, formerly known as Kyphon Inc.
The firm said Kyphon sold the equipment and materials used to perform kyphoplasty and advised the hospitals on billing practices for the procedure.
Kyphoplasty is used to treat certain spinal compression fractures.
The whistleblowers, Chuck Bates and Craig Patrick, are former employees of Kyphon Inc. Phillips & Cohen said it filed a “qui tam” (whistleblower) lawsuit on their behalf against Kyphon and a number of hospitals in 2008 federal district court in Buffalo, N.Y.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info