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St. Francis Hospital to pay $4 million to settle impropet billing claim

Delaware Public Media

St. Francis Hospital in Wilmington has agreed to a $4 million settlement with the federal government and the State of Delaware over improper billing.

The U.S Attorney’s office in Delaware says the settlement covers claims that Medicare and Medicaid patients in the hospital’s inpatient rehabilitation unit were billed unfairly between 2007 and 2010.  The inpatient rehabilitation unit closed in 2011.

The settlement says these patients were overcharged when admission was not medically necessary or the services provided did not fully qualify for reimbursement.  

St. Francis Hospital took steps to resolve the improper payments, and voluntarily disclosed the issues to the United States Attorney’s Office and the Office of the Inspector General of the Department of Health and Human Services.

Around $200,000 of the settlement money will go to the state of Delaware.