27 hospitals, including two in Chicago, improperly charged Medicare for tens of millions of dollars in what the government says were non-approved, exp

Dec. 18, 2002
By Christine Woolsey

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Hospitals cited in Medicare suits
The Justice Department is intervening in dozens of lawsuits that allege 27 hospitals, including two in Chicago, improperly charged Medicare for tens of millions of dollars in what the government says were non-approved, experimental procedures performed from 1986 to 1995.
Among the facilities coming under fire are Northwestern Memorial Hospital and Foster G. McGaw Hospital of Loyola University of Chicago.

In a statement Tuesday, Northwestern said the care it provided Medicare patients between 1990 and 1993 involved medical devices that were "improvements or minor modifications of devices previously approved" by the U.S. Food and Drug Administration. The hospital said treatment protocols for the patients met Medicare's standard of reasonable and necessary care.

What's more, Northwestern said, the FDA ultimately approved the devices it used to treat the patients in question and "Medicare routinely pays for all these devices today."
The lawsuits were originally filed by whistleblower Kevin Cosens, a former medical device salesman, under the False Claims Act, which permits private citizens to file suit on behalf of the government and share in any recovery.

The actions announced Tuesday bring to 40 the number of hospitals the government is pursuing. Federal authorities have previously reached settlements with 31 hospitals for a total of roughly $42 million.

Northwestern said it will "vigorously defend" its treatment of the patients cited in the dispute.