Settlement means more than $900,000 for state’s Medicaid

FRANKFORT, Ky. (WTVQ) – Kentucky’s Medicaid program will received more than $900,000 as its share of a settlement of lawsuits brought in almost every state.

The state will receive $929,016.95 as part of a settlement regarding allegations of fraud against Universal Health Services, Inc., a for-profit holding company, which directly or indirectly owns the assets or stock of inpatient and residential psychiatric and behavioral health facilities, and UHS of Delaware, Inc., a subsidiary of UHS, Inc., which provides management services to UHS, Inc. and its subsidiaries.

UHS is based in King of Prussia, Pennsylvania, and is one of the nation’s largest providers of hospital and healthcare services. The government alleges UHS’s conduct violated the Federal False Claims Act and Kentucky’s Medicaid Fraud statute, resulting in the submission of false claims to the Kentucky Medicaid program.

Attorney General Daniel Cameron joined with 47 other states, one territory, the District of Columbia, and the federal government in the $117 million settlement.

“Medicaid fraud takes a toll on the states Medicaid program and can ultimately raise costs for taxpayers who help fund the program as well as cause harm to beneficiaries,” Cameron said. “We urge Kentuckians to report suspected fraud to our Medicaid Fraud and Abuse Hotline at 1-877-ABUSE TIP (1-877-228-7384).

The settlement resolves allegations that from January 1, 2007, through December 31, 2018, UHS and certain UHS entities submitted or caused to be submitted false claims for services provided to Medicaid beneficiaries.

This settlement results from 18 whistleblower lawsuits originally filed in the United States District Court for the Middle District of Florida, Northern District of Illinois, Eastern District of Pennsylvania, Northern District of Georgia, Middle District of Georgia, Eastern District of Virginia, Western District of Virginia, Western District of Michigan, and Eastern District of Michigan.

Fourteen of the eighteen whistleblower suits named at least one plaintiff state and all but three of the cases were transferred to the United States District Court for the Eastern District of Pennsylvania.