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Hospitals to Settle Billing Allegations

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Bloomberg News

Four hospitals run by HCA-The Healthcare Co., the biggest U.S. hospital chain, agreed to pay $1.9 million to settle allegations they improperly billed Medicare for operations using experimental cardiac devices, the Justice Department said.

The hospitals used devices that hadn’t been approved by the Food and Drug Administration when the procedures were done between 1987 and 1994, the department said. The allegations involved Green Hospital of Scripps Clinic in San Diego as well as hospitals in Phoenix and in Pensacola, Fla.

“This is an old issue that involved hundreds of hospitals across the country, and we’re happy to have it resolved,” HCA spokesman Ed Fishbough said.

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Shares of Nashville, Tenn.-based HCA fell 11 cents to close at $40.23 on the NYSE.

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