G2 News-At-A-Glance: Kansas Hospital Reaches False Claims Settlement

Hutchinson Regional Medical Center Inc. paid $853,651 on Sept. 17 to the United States to settle alleged false claims for hyperbaric oxygen wound therapy services that were either not medically necessary or lacked adequate documentation to demonstrate medical necessity. This amount was in addition to previous refunds by the hospital that totaled over $1.7 million. The government imposed a corporate integrity agreement (CIA) on the hospital that requires the appointment of a compliance officer and compliance committee, creation of a board of directors compliance committee, creation of a code of a conduct for the hospital, and written policies and procedures within 90 days of the effective date of the CIA. Other obligations include training, audits, background checks, and the creation of a disclosure program to foster reporting of compliance problems and get compliance questions answered, anonymously if the employee desires. The policies related to the disclosure program must include nonretaliation language for those reporting potential problems, fraud, or abuse. In addition, Hutchinson must hire an independent review organization and submit quarterly and annual reports to the Office of Inspector General.