Uncategorized
May 20

Federal fraud recoveries hit new high

A $920 million federal fraud settlement with Tenet Healthcare Corp., Dallas, helped push the U.S. Justice Department’s fraud recoveries to a record $3.1 billion in the fiscal year ended Sept. 30, 2006. A $565 million settlement with Boeing Co. also accounted for a large portion of the total, the Justice Department said in an annual report. Healthcare-related fraud comprised the majority of cases, 72%. Government-initiated investigations accounted for $1.8 billion of the recoveries, and whistle-blower suits brought in $1.3 billion. The department’s largest annual recovery previously was $2.2 billion in fiscal 2003. The Tenet settlement, in July, covered several legal issues and included $806 million to resolve claims that the company billed Medicare for excessive outlier payments.

Interesting fact: Did you know the federal budget for the investigation of healthcare fraud is higher than the budget for homeland security?

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →