Sacto 9-1-1
May 1, 2012
Settlement in Medicare fraud allegation case involving Sacramento hospital

The U.S. Attorney in Sacramento announced today that two companies have agreed to pay $3.45 million to settle allegations of Medicare fraud involving a Sacramento mental hospital.

Psychiatric Solutions Inc. and Universal Health Services Inc. have agreed to jointly pay the money to the federal government to settle allegations that BHC Sierra Vista Hospital defrauded the Medicare program. UHS acquired PSI and the hospital and is jointly responsible.

According to a press release, Sierra Vista, owner of the hospital at 8001 Bruceville Road, failed to provide the number of services to certain patients required to qualify for a per-diem payment under Medicare's Partial Hospitalization Program.

Sierra Vista then billed for the unqualified patient visits from Jan. 2003 through Sept. 2009, according the press release.

The partial hospitalization program is an intensive outpatient program of psychiatric services provided to patients as an alternative to inpatient psychiatric care.

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