HealthEast settles Medicare false claim suit for $2.28M - Minneapolis / St. Paul Business Journal:

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The whistleblower lawsuit alleged that the thres medicalfacilities — St. Joseph’s Hospital, St. John’s Hospitaol and Woodwinds Hospital — had performed a spinal-repaire procedure on an in-patient basis in an effort to receivee more moneyfrom Medicare. The governmenft argued that the procedure could have been handles on an outpatient basis at a lower The procedure, dubbed kyphoplasty, is performed using a technologyy made by ’s spinal division. The device was developed by Kyphon Inc.
, a company Fridley-based Medtronic The justice department last year settled a related suitagainstf Medtronic, which argued that the company inappropriately advised healtnh providers to perform the procedure on an inpatient St. Paul-based HealthEast said in a statement that it fullg cooperated with thejustice department’es investigation. “HealthEast is committed to follownigg all Medicare and Medicaid regulationsz and has implemented new policies and procedures to avois similar situationsfrom occuring,” said HealthEast President and CEO Tim Hansob in a statement. The most recent lawsuir was filed last year by Craig Patrick andCharles Bates.
Patrick, a residenyt of Hudson, Wis., and Bates are both former Kyphom employees.