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Chrissie Cole
Chrissie Cole
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Department of Justice in Dispute with MedCath

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The Department of Justice is seeking $8.5 from MedCath Corp to settle an investigation surrounding a clinical trial that was conducted by one of MedCath’s hospitals.

The business dispute alleges fraudulent billings were made to federal health care programs for devices that were implanted into patients during a clinical study.

MedCath says the hospital complied with internal policies and federal requirements and they are not admitting to any liability. They have offered to settle the dispute in the amount of $2.7 million.

A settlement has been agreed upon with the medical practice whose physicians conducted the trial. MedCath is in ongoing settlement talks with the federal agency.

Medcath owns hospitals that specialize in cardiovascular medicine. They operate 11 hospitals and have a total of 667 licensed beds in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota and Texas.