Tampa-based BayCare Health System has agreed to pay $20 million to the United States to resolve allegations that the health system violated the False Claims Act.
The case involves donations made to the Juvenile Welfare Board of Pinellas County to fund the state's share of Medicaid payments to BayCare, according to the U.S. Department of Justice.
The U.S. alleged that between October 2013 and September 2015, BayCare caused false claims for federal Medicaid matching funds to be submitted, according to a release. Specifically, BayCare allegedly made cash donations to JWB knowing that JWB would send a portion to the state for Florida’s Medicaid Program.
Those funds were matched by the government before being returned to the BayCare as Medicaid payments, according to the DOJ. BayCare then recouped its donations and got federal matching funds, which was a violation of the federal prohibition on non-bona fide donations.
The case was handled by attorneys in the Middle District of Florida.
“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, in the release. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state, or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring...
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