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 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?

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Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.