Houston-based Memorial Hermann Health System will pay $1.9 million to settle allegations that the health system performed outpatient procedures in the inpatient setting and then billed Medicare, according to The Houston Chronicle.
The health system faced billing fraud allegations for scheduling inpatient services that should have been done in the outpatient setting or with observation from January 2009 to December 2014 at three of the system's hospitals.
Memorial Hermann said in a statement to The Chronicle that it believed the patients were treated appropriately and the treatments were necessary.