CenCal Health to pay $49.5M in wider DOJ false claims case

DOJ building

County-organized health system CenCal Health and three other healthcare providers agreed to pay a total of $68 million across settlements with the Department of Justice (DOJ) regarding alleged false claims submitted under California’s Medicaid program, Medi-Cal.

CenCal will pay $49.5 million, the DOJ announced in a press release Thursday. Among the other providers, not-for-profit hospital network Cottage Health System will pay $9 million, nonprofit outpatient clinic Sansum Clinic will pay $4.5 million, and nonprofit Community Health Centers of the Central Coast (CHC) will pay $3.15 million. An additional $1.85 million total will be paid back by the three providers to the state of California to round out the settlements.

CenCal, Cottage, Sansum, and CHC “knowingly submitted or caused the submission” of false claims to Medi-Cal for services purportedly provided under the program’s “Adult Expansion” coverage, according to the DOJ. These alleged submissions, occurring across varied periods between 2014 and 2016, were not allowed medical expenses, pre-determined amounts that did not reflect the fair-market value of any services provided; and/or duplicative of services already required to be rendered, the DOJ alleged.

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