Lakeland Regional Medical Center to Pay $4 Million to Settle Medicaid Funding Allegations

Strategic Insights -

The U.S. Department of Justice has issued a press release announcing that Lakeland Regional Medical Center (LRMC) in Lakeland, Florida, has agreed to pay $4 million to resolve allegations of making improper donations to fund the state's share of Medicaid payments. The alleged donations, made between October 2014 and September 2015, were designed to increase Medicaid payments received by LRMC. The settlement was the result of a coordinated effort between the Justice Department's Civil Division and the U.S. Attorney's Office for the Middle District of Florida.

Key Takeaways:

  • LRMC has agreed to pay $4 million to resolve allegations of making improper donations to fund the state's share of Medicaid payments.
  • The alleged donations, made between October 2014 and September 2015, were designed to increase Medicaid payments received by LRMC.
  • The donations were allegedly made to Polk County, Florida, to free up funds for the county to make payments to the state as the state share of Medicaid payments to LRMC.
  • The state share was "matched" by the federal government before being returned to LRMC as Medicaid payments.
  • The Medicaid payments LRMC received were allegedly funded by the federal government and LRMC's own donations, in violation of the prohibition on non-bona fide donations.
  • Principal Deputy Assistant Attorney General Brian M. Boynton stated that "When private parties make improper donations to fund the state share of Medicaid, they undermine a key safeguard for ensuring the integrity of the Medicaid program."
  • U.S. Attorney Roger B. Handberg stated that "Protecting the Medicaid program is crucial, as millions of Floridians rely on it for their medical care and related services."
  • The resolution obtained in this matter was the result of a coordinated effort between the Justice Department's Civil Division and the U.S. Attorney's Office for the Middle District of Florida.

Statistics:

  • $4 million: The amount LRMC has agreed to pay to resolve allegations of making improper donations to fund the state's share of Medicaid payments.
  • October 2014-September 2015: The period during which LRMC allegedly made improper donations to Polk County, Florida.
  • 2014-2015: The time frame during which LRMC allegedly made donations to increase Medicaid payments.

Sources:

  • U.S. Department of Justice press release, "Lakeland Regional Medical Center to Pay $4 Million to Settle Medicaid Funding Allegations" (March 3)
  • HT Media Ltd., "Lakeland Regional Medical Center to Pay $4 Million to Settle Medicaid Funding Allegations" (date not specified)