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HCA to Pay $95.3-Million Fine in Fraud Case

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Bloomberg News

HCA-The Healthcare Co., the biggest U.S. hospital chain, has agreed to plead guilty to health-care fraud and pay fines and penalties of $95.3 million under a settlement agreement with the U.S. Department of Justice. The settlement is based on charges that HCA conspired to defraud government health-care programs, including the Medicare program for the elderly, by making false statements, paying kickbacks to doctors and submitting false bills, according to a one-page summary of the settlement. The criminal settlement, covering charges in Florida, Georgia, Texas and Tennessee, is to be announced today at the Justice Department. The settlement culminates a five-year government case that accused HCA of a “systemic” conspiracy to defraud the government. Atty. Gen. Janet Reno, FBI Director Louis Freeh and other government officials were scheduled to attend the announcement today. Judy Holtz, a spokeswoman for the Inspector General’s Office of the Department of Health and Human Services, which runs Medicare, declined to comment. HCA spokesman Jeff Prescott also declined to comment. HCA, based in Nashville, Tenn., has about 200 hospitals.

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