GLMC lawsuit settled; no cost to taxpayers

Staff Writer


The Grenada County Board of Supervisors will pay $1.1 million to settle a lawsuit against the former Grenada Lake Medical Center, but according to one county official, it won’t cost the taxpayers one cent.
The United States Justice Department recently the settled will resolve a False Claims Act allegations that the hospital sought and received reimbursement from Medicare for services that were not medically reasonable or necessary.
This case has nothing to do with the University of Mississippi Medical Center, which currently operates the hospital.
UMMC took over the hospital in 2014.
The settlement resolves allegations that, beginning in January 2005 and continuing until April 2013, when claims were submitted for Intensive Outpatient Psychotherapy (IOP) services that did not qualify for Medicare reimbursement. The IOP services in question were performed on GLMC’s behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by GLMC directly, according to a news release from the Justice Department.
According to Jay Gore, attorney for the Grenada County Board of Supervisors, the money was escrowed, and the settlement will not be of any cost to the county taxpayers.
“We knew that claim was out there, so the money was escrowed at that time,” Gore said.

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