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Delaware hospital agrees to $4 million federal settlement


WILMINGTON, Del. (AP) — Federal prosecutors say St. Francis hospital in Wilmington has agreed to a $4 million settlement related to improper Medicare and Medicaid billing.

The settlement announced Tuesday involves improperly billing Medicare and Medicaid for patients admitted into a Wilmington inpatient rehabilitation unit between 2007 and 2010 when admission was not medically necessary and services did not fully qualify for reimbursement.

Authorities say the hospital voluntarily disclosed the issues and took corrective action to resolve the improper payments.

St. Francis closed the Wilmington inpatient rehabilitation unit in early 2011.

St. Francis has agreed to pay more than $4 million to the United States and about $200,000 to the state of Delaware.

The settlement also resolves allegations that St. Francis employed an individual who was excluded from participating in federal health care programs.

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