June 15, 2006 — St. Barnabas Corporation St. Barnabas Corporation, the largest healthcare system in New Jersey, has agreed to pay $265 Million to settle allegations raised by two relators under the False Claims Act. The allegations in the case were that St. Barnabas defrauded the Federal Medicare program, between the period of October 1995 and August 2003, by purposefully inflating charges for inpatient and outpatient care. In doing so, it made each patient case appear more costly than they actually were, and thereby obtained monies from Medicare which it was not entitled to receive. Under the False Claims Act, the two relators may be awarded up to $66.2 Million for having filed the qui tam claims. See U.S. Dept of Justice Press Release 6/15/06 |