Dayton psychiatric hospital, owner to pay $425,000 for unnecessary testing

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A Dayton psychiatric hospital and its owner agreed to pay $425,000 to resolve allegations that they knowingly resulted in false claims being submitted to Medicare and Medicaid for unnecessary diagnostic testing, according to the U.S. Attorney’s Office Southern District of Ohio.

Access Hospital Dayton and its owner, Dr. John Johnson, will pay $374,780 to resolve False Claims Act allegations and $50,219 to the state to resolve Medicaid claims.

Between January 2014 and December 2019, Access Dayton and Johnson reportedly caused false claims to be submitted for diagnostic laboratory testing that took place during inpatient stays at the facility. The testing was not used to manage the patients’ condition and was not medically necessary, the government claimed.

“It is crucial that every public dollar available go to treat the drug-addicted and mentally ill,” Ohio Attorney General Dave Yost said. “I am proud of the work by my Health Care Fraud Section and our federal partners to claw back the money to help us continue this fight.”

Medicare pays for diagnostic testing whose results help manage a patient’s condition, according to the U.S. Attorney’s Office. Medicare and Ohio Medicaid typically don’t allow separate payment for diagnostic testing during an inpatient admission.

People can report False Claims Act tips and complaints to the he Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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