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Lawsuit against Lutheran Hospital resolved as part of $98 million settlement

Wednesday, August 6, 2014 - 6:20 am

A “whistleblower” lawsuit filed in Fort Wayne five years ago by a nurse who formerly worked for Lutheran Hospital is among the lawsuits resolved in a $98 million federal settlement with Community Health Systems announced Monday. Community Health Systems is the Tennessee company that owns Lutheran Hospital and its affiliated hospitals in northeast Indiana.

Former Lutheran nurse Nancy Reuille was among plaintiffs in several states who supported government contentions that CHS hospitals admitted patients to the hospital when it wasn't medically necessary and then billed Medicare, Medicaid and the military's Tricare program for those inpatient services. Community Health should have billed for less costly outpatient or observation cases, the government said.

“We’re pleased this matter has been resolved and that the Reuille lawsuit will be dismissed as a result of the settlement agreement,” Lutheran spokesman Geoff Thomas said in an email Tuesday, without elaborating on the settlement.