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Sioux City hospital settles case alleging false claims

SIOUX CITY – Siouxland Community Health Center (SCHC), a community health center in Sioux City, has agreed to pay $200,000 to resolve allegations that it violated the Federal False Claims Act and the State of Iowa False Claims Act. The United States and the State of Iowa contend that SCHC improperly submitted claims to Iowa Medicaid for dental outreach services performed on children who were not eligible for the service because they were either recently treated in SCHC’s dental clinic or were recently the recipient of SCHC’s dental outreach services. As part of the settlement, SCHC did not admit to any wrongdoing or liability.

“It is important that all entities participating in the Medicaid system abide by all of the rules and provide only medically necessary services,” said Sean R. Berry, the United States Attorney for the Northern District of Iowa. “Our office will continue to hold providers accountable to ensure that funds made available for public health purposes are properly utilized.”

The state’s Medicaid Program Integrity Unit initiated the investigation. False Claims Act cases also arise under the qui tam, or whistleblower provision of the Federal False Claims Act. Under those provisions, a private party may file suit upon behalf of the United States for false claims and share in any recovery.

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