THE SETTLEMENT: Hospital operator Tenet Healthcare Corp. has agreed to pay $42.8 million to resolve allegations it overbilled Medicare for the treatment of patients who needed intense inpatient rehabilitation.
THE DETAILS: The Dallas company said that the settlement resolves allegations involving the admission of patients at 25 facilities from May 2005 to December 2007. The Justice Department said Tenet billed Medicare for patients who did not meet the standards for admission to inpatient rehab facilities. Medicare pays those facilities at a higher rate because patients require more difficult rehabilitation and more medical supervision.
THE FALLOUT: Tenet said it already set aside money to cover the settlement and will make the payment in the second quarter.