Louisiana hospital group, physician face Stark law, false claims allegation

Lafayette, La.-based Priority Hospital Group, three of its managed long-term care hospitals and a physician are facing allegations of violations of the False Claims Act tied to medically unnecessary care and improper patient referrals, according to a Jan. 21 news release from the Justice Department.

What happened?

  • The civil complaint names Riverside Hospital and Riverside Hospital of Louisiana (doing business as Riverside Hospital); Post Acute Enterprises (doing business as Mid Jefferson Extended Care Hospital); and New Lifecare Hospital of North Louisiana (doing business as Ruston Regional Specialty Hospital).
  • Federal prosecutors allege the hospitals held Medicare patients longer than medically necessary to maximize reimbursement and delayed…

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