Tuesday, May 18, 2010

Hospitals Settle for Inpatient Rather Than Outpatient Surgery

"Whistle while you work, and cheerfully together we can tidy up the place, so hum a merry tune it won't take long when there's a song to help you set the pace."

On May 17th, 2010 it was reported that a whistleblower lawsuit that sparked a DOJ investigation into the Medicare billing of hospitals for kyphoplasty has resulted in the government recouping $20 million from eighteen hospitals.

The hospitals that recently settled the whistleblowers complaint included;

St. Francis Hospital, Beech Grove, Indiana $3.16 million
Deaconess Hospital, Evansville, Indiana $2.1 million
St. Vincent's East, Birmingham, Alabama $1.46 million
St. John's Hospital System, Anderson, Indian $826,256
St. Vincent's Birmingham Hospital, Birmingham, Alabama $422,748
Providence Hospital, Mobile, Alabama $381,713

In April three Health East Hospitals in the St. Paul, Minnesota area paid the federal government a total of $2.28 million to settle the whistleblower allegations. Medtronic Spine LLC paid $75 million in 2008 to settle a qui tam lawsuit brought by the same whistleblowers. Medtronic had acquired Kyphon which developed and sold the equipment and materials used to perform kyphoplasty and promoted the procedure as a money maker for the hospitals if they billed Medicare for inpatient rather than outpatient surgery.

The "Relators" aka Whistleblowers are entitled to 15-25% of what is recovered. Hopefully, Mssrs. Patrick and Bates can eventually ride off into the sunset hopefully to relieve themselves of the stench that is left over from their affiliation with the Evil Empire.


  1. A) Old news.
    B) Your comment about the "stench" should have been directed at Kyphon in this case and not Medtronic, as the issues took place before Medtronic acquired them...

  2. Stench follows you. Poop your diapers, stench doesn't go away just because you crawl to a different room. If you smell poop, you don;t dive in, you run the other way...well, some of us do.

  3. Did Medtronic acquire Kyphon or did Kyphon acquire Medtronic?...seems Kyphon is pulling the strings and taking all of the upper level management positions (or at least that's how it appears from the outside). Looks like the mighty giant is following the epic implosion that befell DePuy years back.

  4. Hi,

    This is Vicky Silvers, I am an editor for Hospital.com. We are a medical publication whose focus is geared towards promoting awareness on hospitals, including information, news, and reviews on them. We would like to have our site included within your blog and offer our information to your readers, of course we would be more than happy to list your website within our directory as well.

    vicky silvers
    vicky silvers@gmail.com

  5. This is my first visit to TSB. Very insightful. I would love to hear your comments on a small surgeon owned company called Eminent Spine. (www.EminentSpine.com) In spite of it's farsical tag line, I assure you that the company is real and operational. What do you think?