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On March 19, 1997, investigators from the FBI, the Internal Revenue Service and the Department of Health and Human Services served search warrants at Columbia/HCA facilities in El Paso and on dozens of doctors with suspected ties to the company.[20]
Following the raids, the Columbia/HCA board of directors forced Scott to resign as Chairman and CEO.[21] He was paid $9.88 million in a settlement. He also left owning 10 million shares of stock worth over $350 million.[22][23][24]
In 1999, Columbia/HCA changed its name back to HCA, Inc.
In settlements reached in 2000 and 2002, Columbia/HCA pled guilty to 14 felonies and agreed to a $600+ million fine in the largest fraud settlement in US history. Columbia/HCA admitted systematically overcharging the government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by filing false data about use of hospital space. They also admitted fraudulently billing Medicare and other health programs by inflating the seriousness of diagnoses and to giving doctors partnerships in company hospitals as a kickback for the doctors referring patients to HCA. They filed false cost reports, fraudulently billing Medicare for home health care workers, and paid kickbacks in the sale of home health agencies and to doctors to refer patients. In addition, they gave doctors "loans" never intending to be repaid, free rent, free office furniture, and free drugs from hospital pharmacies.[4][5][6][7][8]
In late 2002, HCA agreed to pay the U.S. government $631 million, plus interest, and pay $17.5 million to state Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding Medicare expense claims.[25] In all, civil law suits cost HCA more than $2 billion to settle, by far the largest fraud settlement in US history.[26]

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Yukishiro1 posted:

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What's the incentive? The person doesn't get any money from that from medicare.

That sounds like disability fraud, not medicare fraud.

Or you mean they're faking for some other reason - probably disability - and medicare ends up paying for treatment for a fake injury? But how many people who get medicare are still working and have an incentive to try to pretend to be disabled?

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