Kalispell hospital settles Medicare billing case for $24M

Kalispell hospital settles Medicare billing case for $24M
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A northwestern Montana hospital and a physician group have agreed to pay $24 million to settle a Medicare billing case involving 63 doctors.

The U.S. Department of Justice says Kalispell Regional Hospital violated Medicare billing laws that ban paying physicians for referrals.

The hospital denied the allegations in the settlement that would see $23.7 million in payments to the federal government and $265,000 to the state over the next six years, plus interest. The Flathead Beacon reports the Flathead Physician Group is responsible for $2.8 million in payments.

John Mohatt, the former chief financial officer for the KRH Physician Network, filed the whistleblower lawsuits that led to the investigation. The governments have agreed to pay Mohatt 22.8 percent of their recovery, which should be over $5 million.