Hospital to Pay $2M Plus Additional Contingent Payments for Allegedly Causing False Claims

Doctor’s Hospital 1997 L.P., doing business as United Memorial Medical Center LLC (UMMC), an entity that formerly operated hospitals in the Houston, Texas area, has agreed to pay $2 million, and to make additional contingent payments, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from government healthcare programs and for double billing the government for COVID-19 tests that were also billed either to the State of Texas or the City of Houston. According to the settlement agreement between UMMC and the United States, the settlement funds will be paid by one of UMMC’s principals, Ravishanker Mallapuram, and UMMC has guaranteed the payment of those funds. The settlement also resolves allegations that UMMC concealed and improperly avoided its obligation to reimburse the federal healthcare programs for any excessive outlier payments its hospitals received. In addition, UMMC has agreed to settle allegations that it submitted claims to the Health Resources and Services Administration’s Uninsured Program for COVID-19 testing services, despite being reimbursed for those same services by either the State of Texas or the City of Houston.

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