Hospital chain settles Medicare suit for $32.7 million


Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON, Pa. (AP) — A national hospital chain headquartered in central Pennsylvania has agreed to pay $32.7 million to resolve allegations that it billed Medicare for medically unnecessary services.

The Department of Justice alleged that between 2006 and 2013, Mechanicsburg, Pennsylvania-based Vibra Healthcare admitted patients to five long-term health care hospitals and an inpatient rehabilitation facility although their symptoms didn't qualify them for admission.

Federal authorities also alleged that the company extended the stays of patients unnecessarily, sometimes ignoring its own clinicians' recommendations that they were ready for discharge.

The company, which has facilities in 15 states, said it settled the suit without an admission of liability to resolve the case and avoid a prolonged legal battle. Vibra Healthcare said it denied wrongdoing and believed its hospitals acted in accordance with all applicable regulations.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast