Former Lakeway hospital to pay over $16 million to settle false claims allegations
The former Lakeway Regional Medical Center will pay over $16 million in two separate civil settlements to resolve allegations that it fraudulently obtained and misused government-insured loans through an investor kickback scheme, as well as submitted false claims to Medicare and Medicaid, the U.S. Justice Department announced Monday.
The hospital agreed to pay $13,581,000 and its former managers agreed to pay $1.8 million to resolve allegations they violated the False Claims Act and other laws in connection with the development of the medical center.
The hospital will also pay more than $1.1 million to the United States and Texas to settle allegations that the hospital submitted false claims to the Medicare and Medicaid programs, said U.S. Attorney John F. Bash.
The claims resolved in both settlements are allegations only, the Justice Department said in a statement, and there has been no determination of liability.
Read more: https://www.statesman.com/news/20200928/former-lakeway-hospital-to-pay-over-16-million-to-settle-false-claims-allegations