August 30, 2021
Northern California healthcare provider
Sutter Health and its affiliated entities will pay
$90 million to resolve a False Claims Act case initially filed by whistleblower
Kathy Ormsby alleging that defendants submitted unsupported diagnosis codes for patients enrolled in Medicare Advantage. Sutter contracts with Medicare Advantage Organizations to provide care to Medicare Advantage beneficiaries enrolled in their plans, and allegedly caused those MAOs to submit to Medicare inaccurate and invalid diagnosis codes that inflated the risk scores of those beneficiaries and were not supported by the medical records, thereby resulting in overpayments by CMS. Sutter also allegedly failed to take sufficient corrective action when it became aware of the submission of these unsupported diagnosis codes. Sutter also entered into a five-year corporate integrity agreement. Sutter
previously entered into a partial settlement of $30 million, which will be credited against the $90 million total settlement.
DOJ;
USAO ND Cal