Dallas Agrees to Pay $2.47M to Settle Allegations of Medicare, Medicaid Fraud

The city of Dallas has agreed to pay $2.47 million to the state of Texas and the U.S. government to settle allegations of healthcare fraud, according to a news release from the U.S. Attorney's Office.

The state and U.S. government claim Dallas caused "upcoded" claims to be submitted to Medicare and Medicaid for city-dispatched 911 ambulance transports between 2006 and 2010.

Ambulance services are generally coded as basic life support or advanced life support, with the later reimbursed at a higher rate by Medicare and Medicaid. Dallas allegedly directed its billing contractor to code every ambulance transport at the ALS level.

Texas and the United States launched an investigation on the matter in response to an Aug. 2009 whistleblower suit filed by a former employee of Dallas' auditing department. By settling, Dallas has not admitted any wrong-doing.

Read the release on Dallas' settlement for healthcare fraud allegations.

Related Articles on Healthcare Fraud:
Allegations of Overbilling, Kickbacks at Florida's Halifax Health Move Forward
Johnson & Johnson to Pay South Carolina $327M for Deceptive Drug Marketing
Federal Investigators Shift Focus to Executives in Fight Against Healthcare Fraud


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