The federal complaint alleges improper Medicare billing and unnecessary patient care.
The Department of Justice (DOJ) has filed a civil complaint under the False Claims Act against Priority Hospital Group (PHG), a Louisiana-based hospital management company, three long-term care hospitals it manages, and a physician, alleging that patients were kept hospitalized longer than medically necessary to increase Medicare reimbursements.
Prosecutors also alleged that one facility used financial arrangements, including medical directorship agreements, to improperly induce patient referrals, potentially violating federal anti-kickback and physician self-referral laws. The case was initially brought by a former hospital employee under whistleblower provisions.
DOJ officials say the alleged conduct, if proven, undermines patient care and places improper financial strain on Medicare. The lawsuit reflects continued federal enforcement efforts targeting health care fraud involving government-funded programs.
As the Lord Leads, Pray with Us…
- For Attorney General Pamela Bondi to seek God’s direction as she heads the Justice Department.
- For DOJ officials as they work to enforce health care laws and protections.
- For patients and families impacted by complex health care systems, especially those reliant on long-term or government-supported care.
- For integrity and accountability among health care administrators, physicians, and regulators overseeing Medicare-funded services.
Sources: Medical Economics, JD Supra





