HOUSTON – United Memorial Medical Center has agreed to pay $2 million and to make additional contingent payments to resolve alleged False Claims Act violations, the United States Department of Justice announced Wednesday.
UMMC formerly operated hospitals in the Houston area. They allegedly claimed excessive cost outlier payments from government health care programs and double-billed the government for COVID-19 tests that were also billed either to the state or the City of Houston. The settlement resolves a lawsuit originally brought by Ryan Griffin, a former employee of UMMC, under what the DOJ called the “qui tam provisions” of the False Claims Act. Under the settlement, Griffin will receive $300,000.
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“This over $2 million settlement is significant,” U.S. Attorney Alamdar S. Hamdani said. “We depend upon medical providers to be good stewards of a community’s healthcare services and of the federally funded programs that pay for those services. UMMC made millions by overbilling those health care programs and...
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