Cooper University Hospital in New Jersey has agreed to pay $3.8 million to the federal government as the result of inflating its Medicare claims from 2001 to 2003. Specifically the Department of Justice alleged that the hospital improperly increased its charges for inpatient and outpatient care to make it appear that the charges were greater than they actually were. The whistleblower litigation was brought by Anthony Kite, an independent hospital consultant.
This outlier fraud case involved supplemental payments Medicare makes when a patient exceeds a predetermined payment amount, also known as outlier payments. Similar lawsuits have been brought against other New Jersey hospitals with equal success as the result of their engaging in Medicare fraud.