Judge: MedStar Health must face false claims charges alleged by employee

A false claims case brought against Columbia, Md.-based MedStar Health by one of its employees will be allowed to move forward, an Illinois judge has ruled.

The employee accused MedStar and Chicago-based revenue cycle vendor Accretive Health Inc. — as well as three additional hospitals — of allegedly taking part in submitting false claims to government insurers.

Judge Robert Dow Jr. of U.S. District Court Judge in Illinois dismissed the claims against other hospitals March 22 but ruled that the case will proceed against MedStar and Accretive. The suit was first reported by Bloomberg BNA.

MedStar Washington Hospital Center emergency department employee Cherry Gaziosi alleged she helped submit the false claims to Medicare, Medicaid and Tricare. According to her complaint, Gaziosi alleged Accretive created written recommendations appearing to justify inpatient admissions for patients that emergency department staff previously determined did not meet medical necessity for admission.…

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