St. Luke's University Health Network, Easton Hospital settle improper Medicare claim charges for $1.5 million

The hospitals billed the federal health insurance program for evaluation and management services that were not eligible for reimbursement.

Two local hospitals have agreed to pay a combined $1.5 million to resolve allegations that their facilities in eastern Pennsylvania submitted improper claims to the Medicare program.

U.S. Attorney Peter Smith said today that St. Luke's University Health Network, based in Fountain Hill, and Easton Hospital, in Wilson Borough, billed the federal health insurance program for evaluation and management services that were not eligible for reimbursement.

Prosecutors say St. Luke's and Easton Hospital cooperated after being contacted by the government. St. Luke's has agreed to pay more than $1 million. Easton will pay more than $450,000.

St. Luke's operates hospitals in Bethlehem, Quakertown, Phillipsburg and Coaldale, Pa. Easton Hospital is operated by Community Health Systems of Nashville, Tenn.