In December 2000, the U.S. Justice Department announced what it called the largest government fraud settlement in U.S. history when Columbia/HCA agreed to pay $840 million in criminal fines and civil damages and penalties. Among the revelations from the 2000 settlement, which all apply to when Scott was CEO, were that Columbia overbilled Medicare for unnecessary tests and false diagnosis codes.
The government settled a second series of similar claims with Columbia/HCA in 2002 for an additional $881 million. The total fine: $1.7 billion.
As part of the 2000 settlement, Columbia/HCA agreed to plead guilty to at least 14 corporate felonies. A corporate felony comes with financial penalties but not jail time, since a corporation can’t be sent to prison.
Source link: http://www.politifact.com/truth-o-me...medicare-frau/