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Indiana Moves to Dismiss Lawsuit Tied to Medicaid Meaningful Use

The state attorney general requested to dismiss a lawsuit brought against 62 Indiana hospitals participating in Medicaid meaningful use.

Meaningful Use

Source: Thinkstock

By Kate Monica

- Indiana Attorney General Curtis Hill recently filed a request to dismiss a lawsuit brought against 62 Indiana hospitals for allegedly falsifying records and participating in a kickback scheme involving the release of patient EHRs to meet meaningful use requirements for the state’s Medicaid EHR Incentive Program.

The two South Bend attorneys that filed the lawsuit — Michael Misch and Bradley Colborn — will not oppose the state’s motion for dismissal.

Misch and Colborn filed the claim alleging the hospitals defrauded taxpayers of more than $300 million in part by overbilling for the release of patient EHRs and making false claims. These alleged actions violated provisions of the American Recovery and Reinvestment Act of 2009.

In an effort to receive EHR incentive payments under the policy, the hospitals claimed to have responded to more than half of all medical records requests within three business days. However, Misch and Colborn found the hospitals misrepresented data about patient EHR requests — all of which were handled by CIOX Health.

The request to dismiss the lawsuit states “any recovery of information is highly unlikely and not in the best interest of the state,” according to Indiana Public Media. Additionally, the state has “limited resources to investigate fraud and that this case will divert funds and personnel from other investigations without recovering funds for the Indiana Medicaid program.”

On January 12, Misch and Colborn filed the following response to Hill’s motion:

“While the [Plaintiffs] do not agree with the State of Indiana’s legal analysis of the claims raised in this matter, the [Plaintiffs] and the State, however, agree that the State is entitled to substantial deference in deciding what claims are prosecuted on its behalf,” they stated. “As a result, Plaintiffs have decided not to oppose the State’s motion.”

Misch and Colborn have not responded to additional requests for comment. 

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