Floating Hospital Settles Claims it Scammed Taxpayers

Thursday, Jun 3, 2010  |  Updated 8:30 AM EDT
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Floating Hospital Settles Claims it Scammed Taxpayers

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The FDA is investigating what happened to the patients.

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A New York City clinic that once operated from a barge has agreed to pay $400,000 to settle claims it scammed millions in taxpayer money by setting up clinics that billed at high Medicaid rates.

According to court papers, the Floating Hospital got approval for a Medicaid reimbursement rate of $218 per patient visit based on the high cost of maintaining the barge. The rate is the highest allowed by New York state.

Its other clinics offered services that were not provided on the vessel as required under Medicaid rules.

Court papers say vendors running the clinics were paid $85 per patient; the hospital pocketed the balance of the $218 Medicaid payment.

The hospital did not have to admit wrongdoing. It sold its boat after 9/11 and moved to Queens.

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