Spaulding/Shaughnessy Rehabilitation Hospital North Shore Pays $91,800 to Settle False Claims Act Case for Violation of “Midnight Rule”

The Shaughnessy-Kaplan Rehabilitation Hospitals d/b/a Spaulding Rehab Hospital in Salem Ma., a member of Partners Healthcare Inc. has agreed to pay $91,800 to the United States Government for billing Medicare for certain days of patient care in violation of Medicare’s “midnight rule.” The case, filed by a whistleblower and former employee of the hospital said that Spaulding billed Medicare for days on which patients left the hospital before midnight. The midnight rule allows for Medicare reimbursement only when a patient remains in the nursing facility through midnight on a given day. The whistleblower, who was terminated shortly after circulating a memorandum on the violation, has a pending retaliation case against the hospital, which is part of the False Claims Act. In addition, she will receive 16% of the government’s recovery as allowed by the law. She is represented by Jeffrey A. Newman Esq. of Marblehead and Boston.