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Company to pay $15M to resolve false claims allegations

July 10, 2018

SYRACUSE, N.Y. (AP) — Federal authorities say a New York health care provider and its subsidiary hospital have agreed to pay more than $15 million to the U.S. government and state in a false claims lawsuit settlement.

The U.S. attorney’s office in Syracuse said Monday that Dutchess County-based Health Quest Systems and Putnam Health Center in Putnam County will pay $14.7 million to resolve allegations of violating the federal False Claims Act.

Prosecutors say the companies acknowledged submitting improper claims for health-related services, including federally funded health care programs.

The settlement includes an additional payment of nearly $900,000 that Health Quest will make to the state, which jointly funds New York’s Medicaid program.

The settlement resolves lawsuits brought by three former Health Quest employees-turned-whistleblowers who will each receive portions of the recovered funds.

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