Fraud claims bite hospitals

FORT MYERS — Three Lee County hospitals are part of a group of medical centers nationwide that have agreed to pay the federal government more than $12 million in a false Medicare claims case.

The settlements stem from allegations the hospitals overcharged Medicare from 2000 to 2008 when performing a procedure to treat spinal fractures caused from osteoporosis. Federal officials contend the hospitals performed the procedures on an inpatient basis to increase Medicare billings, even though the work can allegedly be done safely for less on an outpatient basis.

The overall case is a federal lawsuit where 40 hospitals nationwide have already settled with the U.S. Justice Department. The three Lee County hospitals that recently settled with the government are under the Lee Memorial Health System. The hospitals are the Gulf Coast Medical Center, a 349-bed facility in Fort Myers; Lee Memorial Hospital, a 355-bed facility in Fort Myers; and Cape Coral Hospital, a 291-bed facility.

The Lee Memorial Health System owes the government $405,855 for the three hospitals, according to a Justice Department press statement. The Gulf Coast Medical Center's portion is $173,005, while Lee Memorial's share is $159,571. Cape Coral Hospital's portion is $73,278, according to the Justice Department.