Bodenger Discusses Outlier Payments

Bodenger Discusses Outlier Payments
July 10, 2006

George W. Bodenger, Philadelphia Partner and Co-Chair of the Health Law Practice Group, was quoted in this article about hospitals filing class action suits hoping to recover outlier payments.

In June, St. Barnabas Health Care System was sued by two hospitals who alleged the nonprofit system denied other hospitals their share of outlier payments. Earlier in the month, St. Barnabas agreed to pay the government $265 million to settle claims of inflating cost-to-charge ratios to increase its Medicare outlier compensation. The system settled, although did not admit to any offense.

"Realistically, many of these hospitals don't have the cash to pay back the outlier money," said Mr. Bodenger, who represents other hospitals involved in the outlier investigation.