Justice Dept. Hits Columbia/HCA With 6th Suit

The Justice Department accused Columbia/HCA Healthcare Corp. of Medicare fraud at nine south Florida hospitals in the government’s sixth lawsuit against the nation’s largest hospital chain.

The lawsuit, originally brought by a former reimbursement manager with the company, accuses the hospitals of overbilling Medicare for home health-care services by more than $10 million. It seeks more than $30 million in damages.

The suit alleges that Columbia/HCA’s South Florida hospitals double-billed the government health program for the elderly for administrative and billing costs of Olsten Corp., the contractor hired to run their home health-care agencies. Olsten is not a defendant in the initial suit filed by Michael Marine.

The lawsuit “is additional evidence that Columbia committed fraud and should result in additional recovery for the government,” said Andrew Grosso, a lawyer for Marine.

The government has already accused Nashville-based Columbia/HCA of systemic Medicare fraud nationwide, including suspected fraud at its home health-care division. The company has sold its home health-care operations and is trying to settle the 3-year-old government criminal and civil investigation.

Olsten agreed last July to pay $61 million to settle a separate Medicare fraud investigation.

The unsealing of Marine’s civil lawsuit comes nearly two months after it became public that the U.S. attorney’s office in Miami had decided to drop a criminal investigation of five current and former employees of Columbia/HCA and Olsten. Criminal investigations of Columbia/HCA are continuing in other parts of the country.

The government joined the latest whistle-blower lawsuit as it seeks to negotiate a settlement with Columbia/HCA, whose stock fell 44 cents Wednesday to finish at $22.69 on the New York Stock Exchange.