Hospitals Penalized for Fraudulent Medical Billing and Errors

by | Published on Oct 10, 2012 | Medical Billing

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In the US, hospitals are paying huge fines for improper billing. According to a press release from the U.S. Attorney’s Office in Vermont, a hospital paid over $550,000 to the federal government in settlements over claims that six neurologists overbilled the Medicare and Medicaid programs. Last year also, this hospital paid over $2.2 million in settlements for errors in its anesthesiology billing and radiology medical billing.

According to the data obtained, Vermont received an amount of $21,789, New Hampshire received $8,242 and the federal health care programs received over $500,000. “The United States contends that the regulations and guidelines related to billing and coding are direct and clear and that failure to abide by these requirements constituted, at minimum, reckless disregard under the False Claims Act,” the press release said.

Assistant Attorney General Edward Baker, who represented the state of Vermont in the claim told that “There’s a tremendous amount of fraud, waste and abuse out there, and this would be one example.” He also reminds that improper billing practices that violate the False Claims Act are not uncommon among hospitals.

So the government is now very strict against hospitals that are making billing errors knowingly and unknowingly. The billing employees should be provided with proper guidance and training. If the hospital management finds the medical billing process time consuming, the best alternative would be to outsource billing and coding to a dependable medical billing and coding company, where trained and skilled workers provide accurate billing and coding at an affordable rate.

A reliable outsourcing company usually offers a free trial, and affordable pricing for its services. In addition, the firm will also have a number of satisfied clients with testimonials that endorse the excellent quality of service.

Natalie Tornese

Holding a CPC certification from the American Academy of Professional Coders (AAPC), Natalie is a seasoned professional actively managing medical billing, medical coding, verification, and authorization services at OSI.

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