Palm Drive discloses errors in extra payments to physicians


SEBASTOPOL – Palm Drive Hospital disclosed that it failed to enter into proper contracts with physicians, resulting in reimbursement mistakes totaling more than $2.5 million from 2007 through February of this year.

According to a letter provided by the hospital, Palm Drive volunteered the errors to the federal Department of Health and Human Services and the Office of the Inspector General to show the following:

From January to December of 2007, $93,753 was improperly paid to physicians.

From January 2009 to December 2009, $446,097 was improperly paid.

From January 2010 through February of this year, $2 million was improperly paid.

The improprieties stem from a $500 monthly stipend program that the hospital had in place for its top physicians.

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