The hospital which was formerly known by the name of Catholic Healthcare West had submitted bills for inpatient care at 13 of its hospitals in US. Ideally these patients should have been charged less for the treatment.
Elective cardiovascular surgeries for pacemakers and stents were covered under this service from 2006 to 2010. Spinal operation known as kyphoplasty which was performed at four of its hospitals was also covered under the military health care program.
The case came in public preview when suit was filed by Kathleen Hawkins, a former Dignity Health employee. She will be receiving $6.25 million of the total settlement amount.
Ivan Negroni, the chief of U.S. Health and Human Services Department issued a stern warning and said that hospitals that make profit by admitting patients unnecessarily will be held accountable. The reference of Dignity Health is a point in itself and hospitals should observe restrain, Ivan Negroni observed.
Meanwhile Dignity Health came out with its defensive stand. It pointed out that it had done no wrong and had only agreed to pay the settlement amount so as to avoid legal hassles.
Dignity Health is the fourth largest hospital chain in United States and has a fair presence throughout the country.