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Mercy Health System Owes Medicare Millions

August 10, 2010

Mercy Health System, which includes Mercy Suburban Hospital in East Norriton, PA, agreed to pay $7.9 million for overbilling Medicare during a six-year period, according to federal prosecutors, the Norristown Times Herald reported.

The multimillion-dollar settlement follows Mercy Health System’s voluntary disclosure that its hospitals improperly billed the federal health care program. The hospitals reportedly billed Medicare for one-day inpatient hospital admissions between Oct. 1, 2001, and Sept. 30, 2007, that should have been coded as “observations” or “outpatient visits.”

The incorrect coding resulted in higher reimbursements for the medical centers.

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