Illinois hospital agrees to pay $12.5M to settle allegations of billing error

O'FALLON, Ill. (WAND) - St. Elizabeth's Hospital of the Hospital Sisters Health System in O'Fallon agreed this week to pay $12.5 million to resolve allegations that it committed billing errors that may have resulted in an overpayment for services.

A lawsuit claimed the hospital submitted claims for urgent care services billed at a higher level of service.

The United States Attorney's Office Central District of Illinois said the hospital fully cooperated with the Department of Justice's investigation once the errors were brought to the attention of the hospital.

The settlement resolves a whistleblower lawsuit.

St. Elizabeth is not admitting any wrongdoing but has agreed to settle the claims to avoid the expense and uncertainty of litigation.

The settlement was the result of a coordinated effort by the U.S. Attorney's Office for the Central District of Illinois, the Office of the Inspector General of the Office of Personnel Managment, the Inspector General's Office of the Department of Health and Human Services, the Office of the Inspector General for the Department of Defense, the Federal Bureau of Investigation, Springfield Field Office, and the Illinois State Police Medicaid Fraud Control Unit.