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7:51 am
Mon April 21, 2014

Durant Hospital Agrees to Settle Fraud Case

Medical Center of Southern Oklahoma
Credit MCSO

DURANT, Okla. (AP) — A hospital in Durant and its parent company have agreed to pay $1.5 million to resolve claims alleging that an otolaryngologist billed the state's Medicaid program for unnecessary sinus surgeries.

According to the U.S. attorney's office, the Medical Center of Southeastern Oklahoma and its parent company, Health Management Associates Inc., will pay $1,065,000 to the federal government and $435,000 to SoonerCare, the state's Medicaid program.

Federal prosecutors accused the hospital of health care fraud.

The Durant Daily Democrat reports the hospital is denying the allegations. In a statement, the hospital said it is not admitting any wrongdoing or liability and that it agreed to the settlement to avoid costly litigation.

The hospital says the otolaryngologist involved in the case is no longer employed at the medical center.