By JEFF LIPTON
The medical center is one of seven hospitals across the state that operated an inpatient detoxification treatment program for alcohol and drug abuse without the proper certification, according to a civil complaint filed in U.S. District Court in New York’s Eastern District. SpecialCare, a Missouri-based firm for patient referral services, allegedly received monthly kickbacks from the hospitals for referring Medicaid- and Medicare-eligible patients to them, the complaint charges.
Long Beach Medical Center is accused of submitting 298 fraudulent claims to Medicare from July 7, 2002, through Aug. 8, 2005, and billing the federal agency for more than $790,000 for patient detoxification services, and submitting 1,791 claims to the state Medicaid program, at a cost of nearly $6.5 million, according to U.S. Attorney Benton Campbell, who added that the hospital was fully aware that it needed a license to provide these services.
The hospital’s attorney, Peter Hoffman, vehemently denied the charges. “Long Beach Medical Center strongly denies all of the allegations that have been made against it, and it is in the process of seeking to have the court dismiss all of the claims that have been filed against the medical center,” said Hoffman. “As the matter is currently in litigation, the medical center will have no further comment at this time.”
The other hospitals allegedly involved were Our Lady of Mercy, which is now the North Division of Montefiore Medical Center, in the Bronx, Downtown Hospital in Manhattan, Parkway Hospital in Queens, which closed in November, St. Joseph’s Medical Center in Yonkers, Columbia Memorial in Hudson and Benedictine in Kingston. The seven are accused of bilking the state and federal governments of more than $50 million by submitting more than 14,000 fraudulent claims.
“[The seven hospitals] knowingly presented false and fraudulent claims and statements to the United States to receive millions of dollars worth of Medicare and Medicaid payments for services rendered to the patients treated in their unlicensed detoxification units,” the federal complaint alleges.
Through a program known as New Vision, Long Beach advertised and provided detox services from 1999 through 2005, treating those suffering from alcohol and substance abuse and withdrawal despite lacking the required state license, according to the complaint.
The medical center initially agreed to pay SpecialCare a $35,000 monthly fee for its patient referrals, but the fee was soon reduced to $25,000 because SpecialCare was not supplying enough referrals, the complaint alleges.
SpecialCare workers were paid a bonus of $100 each for collectively referring 30 patients a month to the medical center and $200 for 40 patients, and even provided taxis and other transportation for patients, bypassing licensed treatment centers to get them to the medical center, often from New York City, according to the complaint.
LongBeach Medical Center also thoroughly screened patients to make sure they were covered by Medicaid or Medicare before they were admitted to the program, the complaint alleges.
The U.S. Attorney’s Office is seeking civil penalties of $5,500 to $11,000 for each violation against the seven hospitals and the recovery of other damages incurred by Medicaid and Medicare.
Comments about this story? JLipton@liherald.com or (516) 569-4000 ext. 213.
