Arizona Heart Hospital has agreed to settle a False Claims Act suit involving the implantation of graft devices used to treat aneurysms. According to a press release published December 10, 2007 at surgicenteronline.com, the U.S. Dept. of Justice alleged that the devices had not received final marketing approval from the Food and Drug Administration. Medicare has special rules regarding reimbursement for the implantation of so-called investigational devices and the hospital failed to follow those rules.
The hospital will pay approximately $5.8 million in settlement of the allegations.