On April 6, 2022, BayCare Health System Inc. (BayCare) entered into a $20 million settlement under the False Claims Act with the U.S. Department of Justice (DOJ) to resolve allegations that it had made donations in order to improperly inflate the funding four of its hospitals received from the federal Medicaid program. According to the agreement, BayCare did not formally admit wrongdoing or liability; rather, BayCare settled in order to “avoid the delay, uncertainty, and expense of litigation.”
Florida Medicaid is administered by the state but jointly funded by both the state and federal governments. The federal government’s Federal Financial Participation (FFP) share is paid according to statements of expenditures submitted by the state and per the formula described in sections 1903 and 1905(b) of the Medicaid Act. Once state funding obligations are met, matching federal funding is triggered.
Traditionally excluded from state expenditures are provider-related donations, defined as donations or voluntary payments made directly or indirectly to the state by or on behalf of a healthcare provider for administration of the state’s Medicaid plan. However, “bona fide” donations, or donations made to the state by a provider that has no direct or indirect relationship to Medicaid payments made to healthcare providers, will count toward total state expenditures. This has resulted in arrangements where health care providers will make bona-fide provider-related donations to the state...
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https://www.cmhealthlaw.com/2022/04/not-so-charitable-donations-doj-achieves-...