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Is ‘Conversion Foundation’ Liable For Overpayments to Hospital From Medicare?

Is ‘Conversion Foundation’ Liable For Overpayments to Hospital From Medicare?

Is ‘Conversion Foundation’ Liable For Overpayments to Hospital From Medicare?

Louisiana Court says Foundation did not assume obligation and was not a “successor” subject to liability
More than ten years after Ruston Louisiana Hospital Company, LLC purchased substantially all of the assets of Lincoln General Hospital from the Lincoln Health System and began operating the hospital on a for-profit basis, the Center for Medicare & Medicaid Services gave Ruston notice that it was being asked to repay more than $700,000 in overpayments of Medicare made to Lincoln before the sale. Looking for protection from the indemnification clause in the agreement of sale, Ruston sued the Lincoln Health Foundation, which had been a supporting organization to the System and which had received a portion of the System’s assets when it dissolved shortly after the sale. A federal District...

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