Coffey Health System pays $250,000 to settle allegations

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KANSAS CITY, Kan. (WIBW) -- Coffey Health System is paying $250,000 to settle claims that it violated the False Claims Act.

The U.S. government says that CHS submitted false reports to the Electronic Health Records Incentive Program to receive incentives in 2012 and 2013.

Cynthia McKerrigan and Bashar Awad filed the lawsuit on behalf of the government under Whistleblower Provisions in the False Claims Act. They will receive around $50,000 for their involvement in the case.

After investigations by the U.S. Department of Health and Human Services and the United States Attorney's Office for the District of Kansas, the case is being resolved as allegations only and CHS has not been determined liable for the claims.

Both departments responsible for investigating the claims expect that providers keep their records accurate.

“Medicare and Medicaid beneficiaries expect that providers ensure the accuracy and security of their electronic health records,” United States Attorney Stephen McAllister said.

“Providers who fail to properly ensure the security of electronic health records must be held accountable,” Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, said.