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Columbia University Pays More Than $5 Million To U.S.; Whistleblower Case Alleged Medical School Obstetricians Defrauded Medicaid Over Midwife-Handled Deliveries

UPDATE May 2008: The U.S. District Court for the Southern District of New York has ruled against New York Presbyterian Hospital’s second Motion for Summary Judgment, setting an August 4th trial date for the Romano case.

At that time a jury will determine if the hospital is liable for thousands of False Claims Act violations over a five-year period, each of which carries a maximum fine of up to $11,000.

In his April 2, 2008 ruling The Hon. Louis I. Stanton found that no “presentment” requirement was needed in this qui tam case, even though invoices were first given to the New York State Medicaid program (which is funded with federal dollars). In an earlier ruling, in April 2006 Judge Stanton dismissed a hospital motion for Summary Judgment on other grounds.

Columbia University UPDATE: The U.S. District Court for the Southern District of New York has, in effect, ordered a trial to determine if the remaining defendant in the Romano case, New York Presbyterian Hospital, is also liable for False Claims Act violations. In April 2006, The Hon. Louis L. Stanton dismissed the hospital’s motion for Summary Judgment which clears the way for a trial to determine if the hospital is liable for as many as 2,000 False Claims Act violations per year over a more-than-five-year period. Under federal law a fine of up to $11,000 per count, along with up to three times actual damages could be assessed.

Columbia University Pays More Than $5 Million To U.S.; Whistleblower Case Alleged That Medical School Obstetricians Defrauded Medicaid Over Midwife-Handled Deliveries
NEW YORK CITY – Columbia University obstetricians defrauded Medicaid for more than a decade by falsely taking credit for deliveries routinely handled by certified nurse midwives at The New York and Presbyterian Hospital’s Allen Pavilion, according to court documents unsealed today after the university agreed to pay more than $5 million to the U.S. to settle the allegations.