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April 17, 2008

Hospital pays $1.1M to feds

Goodall Hospital in Sanford has agreed to pay more than $1 million to the federal government for overcharging the Medicare program for certain drugs.

The $1.1 million settlement ends an investigation that began in 2005 when the government found the hospital had incorrectly billed Medicare nearly $900,000 for certain cancer, heart and chemotherapy drugs in 2003 and 2004, according to a press release from the U.S. district attorney's office.

Darlene Stromstad, the hospital's president, said the overbilling was a result of incomplete staff training, a new computer system and inadequate checks and balances, the ,Portland Press Heraldreported. The hospital has corrected the situation by instituting new protocols, such as random quarterly audits of finance reports, according to the paper.

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