Cayuga Medical Center Settles Medicare and Medicaid Fraud Allegations for $3.5 Million

January 26, 2012 - A whistleblower government fraud case brought by both the Federal Government under the Federal False Claims Act and the State of New York against Cayuga Medical Center of Ithaca, New York was recently settled by a payment by the hospital of over $3.5M.

The cases were based upon allegations that the hospital defrauded both Medicare and Medicaid. Among the allegations were claims that the hospital submitted requests for unjustified payments by both Medicare and Medicaid while certifying that it was in compliance with federal law, when in fact it was not; and violated the False Claims Act, 31 U.S.C. §3729 et seq.

The State of New York also participated in the settlement. Under the terms of the agreement, Cayuga Medical Center agreed to pay a total sum of $3,576,056.00. Of that amount, the State of New York will receive $426,305.00, and federal health care programs will recover $3,149,751.00.

The whistleblower, a physician at the hospital, will receive a monetary reward based upon the settlement.