Marrero, Louisiana hospital settles False Claims Act suit

West Jefferson Medical Center in Marrero, Louisiana has agreed to a substantial settlement to resolve charges filed against it under the False Claims Act. The public hospital is alleged to have collected Medicaid reimbursement for providing Level 1 pediatric-intensive care services, even though the pediatric unit does not qualify for such status. The 307-bed hospital received the overpayments during the five year period from 1998 to 2003.

The whistleblower in the case was Leslie Klemm, a former nurse who filed the suit on the government’s behalf under the False Claims Act. The Qui Tam provisions of the False Claims Act entitle Ms. Klemm to receive a sizable portion of the hospital’s settlement with the federal and Louisiana governments.
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