Condell agrees to $36 million fraud settlement
Monday was momentous in the 80-year history of Condell Medical Center in Libertyville, as it agreed to pay $36 million to resolve issues with false claims for reimbursement, and it officially became part of the Advocate Health Care Network.
Separate announcements detailed a multimillion-dollar settlement with federal and state authorities as well as the conclusion of an eight-month regulatory process to become Advocate Condell Medical Center.
In the first announcement, U.S. Attorney Patrick Fitzgerald outlined a settlement in which Condell avoided litigation under the False Claims Act by agreeing to pay more than $33 million to the federal government and about $2.9 million to the state.
The agreement relates to contracts between Condell and medical staff members from 2002 through 2007.
Condell in May voluntarily disclosed suspect contracts and agreements it said were made by the previous hospital administration, a move that allowed it to negotiate a discount.
"We expect health-care providers to come forward when they discover issues that could rise to the level of fraud without waiting for us to catch up to them, and when they do so, they may well benefit," Fitzgerald said in a statement.
Internal audits showed the contracts may not have fully complied with federal law or Medicare and Medicaid regulation.
Condell leased space in office buildings it owned to physicians in violation of federal laws governing Medicare and Medicaid reimbursement, according to the settlement agreement, because the rents were below market rate or were abated or deferred.
The hospital also made loans to physicians and improperly allowed them to work off the debt at inflated hourly rates. The loans were made without assessing whether there was a community need for such arrangements or doctors, the agreement says.
The number or names of the doctors were not released.
"We regret that in the past Condell may have been engaged in any practices that were not compliant with the law and remain committed to the highest standards of conduct," Condell CEO Dennis Millirons said in a statement.
The hospital Monday officially became Advocate Condell Medical Center to conclude a reported $180 million deal.
"Probably the most important thing is we're back in network with Blue Cross," said Chris Vicik, director of public relations at Condell.
Condell continues its pursuit of Level I trauma center status and is proceeding with expansion plans, she said. The key characteristic of a Level I trauma center is having a surgeon available 24 hours a day, allowing the hospital to treat all trauma patients in Lake County.
Suit: Advocate deal worth $180 million