Cabrini Medical Center

New York, NY: (Mar-29-07) Federal prosecutors filed charges against Cabrini Medical Center, accusing it of Medicaid fraud, alleging that the hospital allegedly kicked back millions of dollars to Applied CaseManagement, an alcohol and drug treatment consulting firm. Charges were filed after whistleblower John Reilly, an employee at the firm, booked charges against the hospital in 2000 and accused two other upstate hospitals of similar schemes. In the initial complaint against Cabrini, prosecutors said the hospital retained Applied CaseManagement between 1995 and 1999 to provide administrative services. The hospital actually paid the firm for referrals to its detoxification unit and illegally accepted Medicaid reimbursements for those patients. Cabrini also operated its detoxification unit without mandatory certification from the Office of Alcoholism and Substance Abuse Services. In a settlement reached, Cabrini Medical Center agreed to pay $3.4 million to settle charges and announced that it has terminated its contract with Applied CaseManagement. [NEW YORK SUN: CABRINI FRAUD]

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Published on Apr-3-07