Suit accuses hospital chain of overbilling - San Diego, California News Station - KFMB Channel 8 - cbs8.com

Suit accuses hospital chain of overbilling

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SAN DIEGO (AP) — A former executive at a San Diego hospital has filed a $50 million whistleblower lawsuit against Prime Healthcare, accusing it of defrauding Medicare.

Prime says the allegations are "speculative nonsense."

The U-T San Diego (http://bit.ly/1jeRqGd ) reports the suit was filed in 2011 and was unsealed Tuesday by a judge after the confidential time period lapsed.

The U.S. Attorney's Office in Los Angeles is investigating and told the judge it's not prepared to join the case yet.

The ex-executive at Alvarado Hospital accused Prime of overbilling Medicare at the facility and 14 other medical centers the hospital owns across the state.

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Information from: U-T San Diego, http://www.utsandiego.com

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