NYC Hospital Pays $11.6M in Medicare Case

MANHATTAN (CN) - Lenox Hill Hospital will pay $11.8 million to settle a federal complaint accusing it of fraudulently inflating its charges for Medicare patients, the U.S. Attorney's Office said.

The hospital juggled its books to overcharge for "outlier payments," prosecutors said in announcing the settled complaint.

"Specifically, the hospital intentionally raised its room and board charges and manipulated its overall charge structure to make it appear as though its treatment of certain patients was unusually costly, when in fact it was not. In this manner, Lenox Hill obtained millions of dollars in Medicare outlier payments to which it was not entitled from February 21, 2002 through August 7, 2003," the U.S. attorney said in the statement.

The 652-bed hospital is on Manhattan's Upper East Side, 2 blocks from Central Park.

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