CHICAGO (CN) – Condell Health Network, which runs a 283-bed hospital in Libertyville, will pay $36 million to settle charges of submitting false insurance claims. Condell avoided more damages by reporting the improper claims itself this year when it was being acquired by another company.
“We commend Condell for bringing these practices to our attentions,” U.S. Attorney Patrick Fitzgerald said. “We expect health care providers to come forward when they discover issues that could rise to the level of fraud without waiting for us to catch up to them, and when they do so, they may well benefit.”
The settlement covers conduct between Condell and its physicians from 2002 to 2007, including leasing of medical office space below fair market price and improper loans to physicians, given regardless of community need or benefit, which physicians sometimes worked off at hourly rates higher than fair market value.
The settlement also covers Medicare and Medicaid reimbursements the hospital paid to doctors for services despite inadequate documentation.
Of the $36 million, $33.12 million will go to the United States to settle Medicare claims and $2.88 million to Illinois for claims Medicaid claims.
Libertyville is a north Chicago suburb.