Quorum Health Group Inc., owner of Kosciusko Community Hospital, has reached a settlement of approximately $85 million with the U.S. Justice Department in a civil fraud lawsuit, it was announced Monday.
The Brentwood, Tenn.-based company agreed to pay the amount to settle accusations that it submitted false cost reports and overbilled the government by more than $70 million for Medicare. Allegedly, Quorum followed the same billing procedure as the company that owned it previously until 1989, HCA/The Healthcare Co.
As part of the settlement, Quorum does not admit to any wrongdoing.
The fraud occured between 1985 and 1999, according to the Justice Department and there were more than 2,000 inflated cost items.
Other northeast Indiana hospitals owned by Quorum include Lutheran, St. Joseph and Dupont hospitals.