MYNORTHWEST NEWS

Providence agrees to pay $22 million in medical fraud case

Apr 12, 2022, 1:51 PM

Providence Centralia Hospital in Washington (wikimedia commons)...

Providence Centralia Hospital in Washington (wikimedia commons)

(wikimedia commons)

Providence Health & Services Washington has agreed to pay $22.6 million to resolve allegations that its Walla Walla hospital fraudulently billed Medicare, Medicaid and other federal health care programs for medically unnecessary neurosurgery procedures, prosecutors said Tuesday.

Vanessa R. Waldref, U.S. Attorney for the Eastern District of Washington, and Bob Ferguson, the Washington state Attorney General, announced the settlement between Providence, the U.S. and the state of Washington, which administers Washington’s Medicaid program using a combination of state and federal funding.

It is the largest-ever health care fraud settlement in the Eastern District of Washington, Waldref’s office said in a statement.

Providence operates 51 hospitals in seven western U.S. states, including Providence St. Mary’s Medical Center in Walla Walla, Washington.

The hospital did not immediately return phone calls seeking comment.

Between 2013 and 2018, Providence St. Mary’s employed neurosurgeons identified in the settlement agreement as Dr. A and Dr. B, Waldref’s office said in a statement.

Providence St. Mary’s paid neurosurgeons on a system that provided them a financial incentive to perform more surgical procedures of greater complexity. Between 2014 and 2018, Providence paid Dr. A between $2.5 million and $2.9 million per year, the statement said.

Tuesday’s settlement resolves allegations that Providence falsely billed Medicare, Washington State Medicaid and other federal health care programs for deficient and medically unnecessary neurosurgery procedures performed by Dr. A and Dr. B.

“Patients with back pain and spinal injury deserve top-notch care from a provider who puts the patient first and is not improperly influenced by how much he can bill for the procedure,” Waldref said.

“Providence’s failure to ensure that Dr. A and Dr. B were performing safe and medically-appropriate surgery procedures, despite repeated warnings, put patients’ lives and safety at serious risk,” Waldref said.

“Patients trust their doctors that the care they receive is necessary, particularly when they are undergoing neurosurgery,” Ferguson said. “Performing unnecessary surgeries for profit is a betrayal of that trust.”

As part of the settlement agreement, Providence admitted that hospital employees expressed concerns that Dr. A and Dr. B were endangering the safety of patients, had performed surgery on candidates who were not appropriate for surgery and failed to properly document their procedures and outcomes.

Providence admitted that, while it eventually placed both Dr. B and Dr. A on administrative leave in February 2017 and May 2018, respectively, it allowed both doctors to resign while on leave, and it did not take any action to report Dr. A or Dr. B to the appropriate authorities.

As part of the settlement, Providence agreed to implement and maintain a number of quality-of-care and patient safety obligations. Additionally, Providence must retain outside experts to perform annual claims and clinical quality systems reviews.

The case began in January 2020, when the former medical director of neurosurgery at Providence-St Mary Medical Center filed a complaint with the federal court.

MyNorthwest News

nurse on phone...

KIRO Newsradio staff

‘Humans must be in the loop’: Seattle council questions AI tool used to divert 911 calls to nurse line

The Seattle City Council is scrutinizing an AI program that's been prompting fire department dispatchers to route some 911 callers to a nurse line.

8 hours ago

I-405 (1)...

Nate Connors

Drivers on I-405 face more closures this week

Eastside commuters have certainly had their fair share of closures during the massive I-405 widening project over the past few years.

9 hours ago

fish sound transit...

Jack Bilyeu, KIRO 7 News

Divers speak after discovering piles of electrocuted fish under I-90 bridge

Sound Transit is working to fix an electrical issue along the Crosslake Connection. The agency believes the issue was killing fish.

9 hours ago

Endangered Species Act...

Ian Sterling, KIRO Newsradio

‘Exploitation’: WA joins lawsuit to block Trump admin. from gutting Endangered Species Act

Washington is joining forces with 20 other states to sue the Trump administration over the Endangered Species Act.

10 hours ago

MOTO Pizza...

425

The man behind MOTO Pizza

Lee Kindell is looking to expand MOTO Pizza to several more locations throughout the greater Seattle area.

11 hours ago

tiger mountain SR 18...

Nate Connors

4 nights of lane restrictions on SR 18 over Tiger Mountain

WSDOT is starting a four-night surveying project over Tiger Mountain Summit that will reduce a 6-mile stretch of eastbound SR 18.

11 hours ago

Providence agrees to pay $22 million in medical fraud case